Exhibit 30-2 ​ Refer to Exhibit 30-2. This Graph Represents a Positive Externality

question 179

Multiple Choice

Exhibit 30-2 ​

Refer to Exhibit 30-2. This graph represents a positive externality situation. Given this, which of the two curves, X or Y, represents marginal social benefits and why?

• A)Curve X, because if there is a positive externality, negative external benefits are associated with it: social costs external benefits - private benefits, therefore the marginal social benefit curve must lie below the marginal private benefit curve.
• B)Curve X, because if there is a positive externality, external benefits are associated with it: social benefits = external benefits + private benefits, therefore the marginal social benefit curve must lie below the marginal private benefit curve.
• C)Curve Y, because if there is a positive externality, external costs are associated with it: social benefits = external costs + private benefits, therefore the marginal social benefit curve must lie above the marginal private benefit cost curve.
• D)Curve Y, because if there is a positive externality, external benefits are associated with it: social benefits = external benefits + private benefits, therefore the marginal social benefit curve must lie above the marginal private benefit curve.

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Definitions:

Project Logic Diagram

A visual representation of the logical sequencing of activities, tasks, and milestones required to achieve a project's objectives.

Milestone Schedule

A project management tool that outlines significant events or achievements as specific points along a project timeline.

Work Breakdown Structure

A hierarchical decomposition of a project into smaller components and work packages, making project management more manageable.

Scope Of Work

A detailed document that outlines the specific tasks, deadlines, deliverables, and expectations for a project or job.