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

question 46

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.When the government intervenes to correct for the external cost, the output will _______ from _______ to _______ .

• A) fall; W; R
• B) increase; W; R
• C) fall; R; W
• D) fall; W; 0

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Definitions:

Lower Extremity

Refers to the lower limbs or legs of the human body, including the thighs, knees, calves, ankles, and feet.

Swayback

A postural deviation where there is an excessive inward curvature of the lower back, leading to a protruding abdomen and a slumped posture.

Neck Vein

A vein located in the neck that returns blood from the head to the heart.

Melena

Abnormal black, sticky stool containing digested blood that is indicative of gastrointestinal bleeding.