Use the Figure Below to Answer the Following Question(s)

question 130

Multiple Choice

Use the figure below to answer the following question(s) . Figure 5-2
Figure 5-2 illustrates the market for a product that generates an external cost. S₁ is the private market supply curve, while S₂ is the supply curve including the external cost. Which of the following is true?

• A) Point a illustrates the competitive private market outcome, while point b illustrates the outcome consistent with economic efficiency.
• B) Point b illustrates the competitive private market outcome, while point a illustrates the outcome consistent with economic efficiency.
• C) The competitive private market outcome is consistent with the conditions for economic efficiency.
• D) The good will tend to be undersupplied relative to the conditions for economic efficiency.

---

Definitions:

Healing The Sick

The act or process of restoring health to an ill individual.

Ju/'hoansi

A group of indigenous people living in the Kalahari Desert in southern Africa, known for their hunter-gatherer lifestyle.

N/um

A term from the Khoisan language referring to a sacred, spiritual power believed to reside in healers and used during healing dances and rituals.