A Shift from S1 to S2 Reflects the Change That

question 234

Multiple Choice

A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account.A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account.
-Refer to the above figures.An external benefit exists.This will lead to a(n)

• A)underproduction equal to minus .
• B)overproduction equal to minus .
• C)underproduction equal to minus .
• D)overproduction equal to minus .

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a specified sum of money at a defined future point in time or on demand.

Honors a Note

This refers to the action of fulfilling the obligations outlined in a promissory note, typically by repaying the principal and interest by the due date.