Exhibit 17-1 -In Exhibit 17-1,the Amount by Which the Total Social Cost

question 6

Multiple Choice

Exhibit 17-1
-In Exhibit 17-1,the amount by which the total social cost of producing the private equilibrium level of output exceeds the total social benefit is

• A)$300
• B)$50
• C)$5,000
• D)$1,600
• E)$8,000

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Definitions:

External Locus

A belief system where individuals perceive their outcomes in life as being largely controlled by external forces rather than their own efforts.

Locus of Control

Refers to an individual's belief system regarding the causes of his or her experiences and the factors to which that person attributes success or failure.

Adaptation-Level

A theory suggesting that people adapt to certain levels of stimuli and thus their perception of new stimuli is dependent on past experiences.

Type A Personality

A personality characterized by high levels of competitiveness, self-drive, impatience, and a constant sense of urgency.