-In Graphical Form, the Presence of an External Benefit That

question 94

Multiple Choice

-In graphical form, the presence of an external benefit that is ignored by consumers can be shown as

• A) a market demand curve to the left of the market demand curve for which the consumers take the external benefit into account.
• B) a market demand curve to the right of the market demand curve for which the consumers take the external benefit into account.
• C) a market demand curve the same as the market demand curve for which the consumers take the external benefit into account.
• D) the absence of a market demand curve.

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Definitions:

Centimeter

A metric system unit of length, totaling one hundredth or 0.01 of a meter.

Weight

The force exerted by gravity on an object, proportional to its mass.

Liters

A metric unit of volume equal to 1,000 cubic centimeters or approximately 0.264 gallons.

Gram

A mass measurement in the metric system, equivalent to 0.001 of a kilogram.