Refer to Figure 53

question 54

Multiple Choice

Refer to Figure 53.4 and then answer the following questions.

Figure 53.4: Infant mortality and life expectancy at birth in developed and developing countries (data as of 2005) .
-What is a logical conclusion that can be drawn from the graphs above?

• A) Developed countries have lower infant mortality rates and lower life expectancy than developing countries.
• B) Developed countries have higher infant mortality rates and lower life expectancy than developing countries.
• C) Developed countries have lower infant mortality rates and higher life expectancy than developing countries.
• D) Developed countries have higher infant mortality rates and higher life expectancy than developing countries.
• E) Developed countries have a life expectancy that is about 42 years more than life expectancy in developing countries.

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Definitions:

Goods And Services

The outputs offered in an economy for consumption, where goods are physical items and services are activities performed for others.

Socially Optimal

A condition or point at which the societal welfare is maximized, considering both efficiency and equity.

Marginal Social Cost

The total cost to society of producing an additional unit of a good, including both private costs and any externalities.

Marginal Social Benefit

The added value to the general population from the manufacture or use of one more unit of a good or service.