This Graph Shows the Marginal Cost and Marginal Benefit Associated

question 94

Multiple Choice

This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope. Suppose the state highway department has picked up 15 bags of litter. Protesters have staged a demonstration demanding that the highway department return to pick up the remaining litter. From an economic efficiency perspective, the protesters have a ______ claim because ______.

• A)legitimate; litter generates a negative externality
• B)faulty; the additional resources needed to remove more litter could be better used elsewhere
• C)faulty; the government is not responsible for taking care of private property
• D)legitimate; the government has a responsibility to take action when private market incentives do not yield the socially optimal outcome

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Definitions:

Learned Behaviors

Actions or reactions that individuals acquire through interaction with the environment and through reinforcement.

Needs-Hierarchy Theory

A psychological theory proposed by Abraham Maslow, suggesting that individuals have a set of needs that exist in a hierarchy, starting from basic physical needs to self-actualization.

Higher Needs

Refers to advanced stages of human motivation beyond basic physiological needs, emphasizing self-fulfillment and personal growth.

Deficit Needs

A concept in Maslow's hierarchy of needs that refers to the basic requirements for physical and psychological well-being, such as food, safety, and belonging.