The Chief Reason for the Wars of Louis XIV Was

question 32

Multiple Choice

The chief reason for the wars of Louis XIV was

• A)to reduce the power of the Habsburgs.
• B)his desire to insure the dominance of France in all Europe.
• C)to destroy the commercial superiority of the Dutch.
• D)to gain ports on the Adriatic Sea.
• E)spread Catholicism throughout all of Europe.

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Definitions:

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded by consumers at different prices.

Social Costs

The total cost to society, including both private costs incurred by firms and external costs to individuals not involved in a transaction.

Socially Optimal

A state in which resources are allocated in the most efficient way from a societal perspective, maximising collective welfare or benefit.

Pigovian Tax

A tax or charge levied on the production of a product that generates negative externalities. If set correctly, the tax will precisely offset the overallocation (overproduction) generated by the negative externality.