Exhibit 30-5 ​ Refer to Exhibit 30-5. If a Positive Externality Exists, Then

question 155

Multiple Choice

Exhibit 30-5 ​

Refer to Exhibit 30-5. If a positive externality exists, then curve 1 represents the __________, curve 2 represents the __________, curve 3 represents the __________ and Q₁ represents the __________.

• A)marginal private cost curve; demand curve; marginal social benefit curve; market output
• B)demand curve; marginal social benefit curve; supply curve; market output
• C)marginal social benefit curve; demand curve; marginal private cost curve; socially optimal output
• D)demand curve; marginal social benefit curve; supply curve; socially optimal output
• E)marginal social benefit curve; supply curve; marginal private cost curve; market output

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Definitions:

Traffic Rules

Regulations established by authorities to ensure safe and efficient movement of vehicles and pedestrians on roads.

Sport-Utility Vehicle

A class of vehicle that combines elements of road-going passenger cars with features from off-road vehicles, like increased ground clearance and four-wheel drive.

Personal Fable

A cognitive distortion encountered in adolescence, making individuals believe they are unique, invincible, and not understood by others.

Moral Judgments

Decisions or opinions about what is right and wrong, typically reflecting personal values or societal standards.