Refer to the Figure Below

question 126

Multiple Choice

Refer to the figure below. This graph describes a good that:

• A)generates positive externalities.
• B)should be banned.
• C)generates negative externalities.
• D)the government should subsidize.

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Definitions:

Salt

A mineral composed primarily of sodium chloride (NaCl), used in food seasoning and preservation, and industrially in chemical production.

Energy Resource

A natural or artificial source of power that can be converted into useful energy, such as fossil fuels, solar, or wind power.

Oil And Gas

Natural hydrocarbon resources extracted from the Earth, used as fuels and in the production of chemical compounds.

Coal

A combustible black or brownish-black sedimentary rock formed from ancient plant material, used as fuel.