Use the Following to Answer Question(s): Correcting for Market Failure

question 128

Multiple Choice

Use the following to answer question(s) : Correcting for Market Failure: External Cost

-(Exhibit: Correcting for Market Failure: External Cost) Assume that there is an external cost involved, as illustrated in the exhibit.If the government intervenes to correct for the external cost, there will be a ________ of _______ .

• A) net gain; WTUR
• B) net cost; TUV
• C) net gain; TUV
• D) net gain; WTVR

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Definitions:

Laceration

A deep cut or tear in skin or flesh.

Comminuted Fracture

A type of bone fracture where the bone is broken into several pieces.

Closed Fracture

A type of bone fracture where the skin remains intact and there is no open wound over the fracture site.

Acute Abdominal Pain

A sudden onset of severe pain located in the abdomen which may indicate a serious condition.