-Refer to Figure 15-5

question 61

Multiple Choice

-Refer to Figure 15-5. If, because of an externality, the economically efficient output is Q₂ and not the current equilibrium output of Q₁, what does D₁ represent?

• A) the demand curve reflecting external benefits
• B) the demand curve reflecting social benefits
• C) the demand curve reflecting private benefits
• D) the demand curve reflecting the sum of private and social benefits

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Definitions:

Acres

A unit of land area used in the imperial and US customary systems, equal to 43,560 square feet, or about 4047 square meters.

Cleaned

The state or condition of being free from dirt, contaminants, or impurities after undergoing a cleaning process.

Worker

An individual employed to perform tasks or services, usually in exchange for compensation.

Lowest Terms

A fraction is said to be in its lowest terms when it is reduced such that the numerator and denominator are the smallest whole numbers possible.