Figure 4-19 Figure 4-19 Shows a Market with an Externality

question 70

Multiple Choice

Figure 4-19
Figure 4-19 shows a market with an externality. The current market equilibrium output of Q₁ is not the economically efficient output. The economically efficient output is Q₂.
-Refer to Figure 4-19.If,because of an externality,the economically efficient output is Q₂ and not the current equilibrium output of Q₁,what does D₂ represent?

• A) the demand curve reflecting external benefits
• B) the demand curve reflecting social benefits
• C) the demand curve reflecting private benefits
• D) the demand curve reflecting the sum of social and external benefits

---

Definitions:

Storm And Stress

A concept in developmental psychology suggesting adolescence is marked by periods of conflict with parents, mood disruptions, and risk behaviors.

Triggered By Puberty

This refers to the onset or aggravation of certain conditions or behaviors as a result of the physiological and hormonal changes during puberty.

Secondary Sex Characteristics

Physical features that emerge during puberty which are not directly involved in reproduction but distinguish the male and female bodies.

Testosterone

A steroid hormone that plays a key role in the development of male reproductive tissues and secondary sexual characteristics.