Figure 5-2 Figure 5-2 Shows a Market with a Negative Externality

question 206

Multiple Choice

Figure 5-2

Figure 5-2 shows a market with a negative externality.
-Refer to Figure 5-2.The efficient output level is

• A)Qd.
• B)Qb.
• C)Qₐ.
• D)Qb - Qd.

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Definitions:

Disposable Income

The money that remains for savings and expenses after income tax deductions from a person's or family's earnings is the disposable income.

APS

Average Propensity to Save, the proportion of total income that is saved by a household or economy.

Saving

The act of setting aside a portion of income for future use, typically in a bank account or other secure investment.

Disposable Income

Resources meant for household spending and saving once income tax obligations are settled.