Exhibit 30-4 ​ Refer to Exhibit 30-4. If a Negative Externality Exists, Then

question 67

Multiple Choice

Exhibit 30-4 ​

Refer to Exhibit 30-4. If a negative externality exists, then the external costs associated with the negative externality equal the distance between points __________, and the socially optimal output is __________.

• A)A and C; Q₂
• B)D and B; Q₁
• C)C and B; Q₂
• D)A and B; Q₂

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Definitions:

Primary Appraisal

The initial evaluation process where an individual assesses the significance of a stressor to determine its potential threat.

Distress-eustress Dichotomy

A concept distinguishing between detrimental stress (distress) and beneficial stress (eustress) in terms of their effects on an individual’s health and well-being.

Primary Appraisal

The initial evaluation of a situation to determine its potential impact as stressful, positive, or irrelevant.

Secondary Appraisal

The evaluation of one's ability to cope with the consequences of a stressful event, following an initial assessment of its significance.