Draw a Horizontal Line

question 262

Multiple Choice

Draw a horizontal line. From the midpoint of this line, draw a perpendicular line extending upward. Write the letter "N" on each end of the horizontal line and the letter "O" at the end of the vertical line. Rotate the drawing 360 degrees clockwise.
Which of the following drawings correctly corresponds with the directions?

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Definitions:

Positive Externality

A benefit enjoyed by a third-party as a result of an economic transaction they are not directly involved in.

Equilibrium Quantity

The amount of products or services available that matches the amount sought after at the price where supply meets demand.

Socially Optimal

A condition in which resources are allocated in the most efficient way from the perspective of society as a whole.

Positive Externality

A beneficial effect experienced by a third-party or the society at large, as a result of an economic activity, that isn't reflected in the cost.