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:

Reinforcement

In behaviorism, a stimulus or event that follows a behavior and increases the likelihood of that behavior's recurrence.

Variable-ratio

A schedule of reinforcement where a response is reinforced after an unpredictable number of responses, making it highly resistant to extinction.

Reinforcement

An operational technique used in behavior analysis to increase the frequency of a desired behavior by introducing a motivating item after the behavior is exhibited.

DRH Schedule

Differential Reinforcement of High Rates of behavior schedule; a reinforcement schedule in which a higher rate of a specific behavior is reinforced, encouraging the behavior to occur more frequently.