If the External Cost of an Activity Is Added to the Private

question 43

Multiple Choice

If the external cost of an activity is added to the private costs,then the:

• A)supply curve shifts right.
• B)quantity supplied rises.
• C)supply curve shifts left.
• D)demand curve shifts right.

Understand the functions and characteristics of money, including its role as a unit of account, medium of exchange, and store of value.

Identify different types of money, including commodity money, fiat money, and legal tender.

Explain the concept of fractional reserve banking and its impact on the banking system.

Recognize the historical development of money and banking, including the role of early bankers.

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Definitions:

Imposing Mass

A structure or object that is large and impressive in appearance or size.

American Gothic

A painting by Grant Wood from 1930, depicting a farmer and his daughter standing in front of a house, iconic for its portrayal of rural American life.

Grant Wood

An American painter best known for his paintings depicting the rural American Midwest, particularly the painting "American Gothic."

Lancet Window

A tall, narrow window with a pointed arch at the top, commonly found in Gothic architecture.