The Following Sentences Form a Paragraph

question 62

Multiple Choice

The following sentences form a paragraph. For each blank, select the correct verb form.
-Hunt quickly dressed, threw open his door, and __________ downstairs into the street.

• A) ran
• B) runned

---

Definitions:

Pigouvian Subsidy

A financial incentive given by the government to encourage activities that have positive externalities, or beneficial effects on society that are not reflected in the market price.

Free Market

An economic system where prices for goods and services are determined by the open market and consumers, with minimal government intervention.

Optimal Pigouvian Tax

A type of tax designed to correct the negative externalities of a market activity, set at a level that equates the marginal social cost of the externality with the marginal private cost.

Socially Optimal

A condition where resources are allocated in a way that benefits society as a whole, maximizing overall welfare.