Scenario 10-1 The Demand Curve for Gasoline Slopes Downward and the Supply

question 112

Multiple Choice

Scenario 10-1
The demand curve for gasoline slopes downward and the supply curve for gasoline slopes upward. The production of the 400th gallon of gasoline entails the following:
a private cost of $2.83;
a social cost of $3.12;
a value to consumers of $3.23.
-Refer to Scenario 10-1. From the given information, it is apparent that

• A)the production of gasoline involves a negative externality, so the market will produce a smaller quantity of gasoline than is socially desirable.
• B)the production of gasoline involves a negative externality, so the market will produce a larger quantity of gasoline than is socially desirable.
• C)the production of gasoline involves a positive externality, so the market will produce a smaller quantity of gasoline than is socially desirable.
• D)the production of gasoline involves a positive externality, so the market will produce a larger quantity of gasoline than is socially desirable.

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Definitions:

Self-Report Measure

A method of gathering data by asking individuals to report their own thoughts, feelings, behaviors, or experiences.

Projective Test

is a psychological assessment tool used to uncover unconscious desires, feelings, and conflicts, typically through ambiguous stimuli.

Clinical Interview

A clinical interview is a method used by therapists to gather information about a patient's psychological state, history, and symptoms for assessment and treatment planning.

Social Phobia

A chronic mental health condition characterized by an intense fear or anxiety of being judged, negatively evaluated, or rejected in social or performance situations.