-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:

Olfactory Cells

Sensory cells located in the olfactory epithelium of the nose involved in the detection of odors, playing a key role in the sense of smell.

Muscle Spindles

Sensory receptors within the belly of muscles, responding to stretch and actively participating in the regulation of muscle contraction.

Astigmatism

Uneven shape of the cornea or lens of the eye; causes a distortion in the light reaching the retina of the eye.

Nearsightedness

A common vision condition where one can see objects near to them clearly, but objects farther away are blurry. Also known as myopia.