Figure 5-5 Shows a Market with an Externality

question 256

Multiple Choice

Figure 5-5 shows a market with an externality.The current market equilibrium output of Q1 is not the economically efficient output.The economically efficient output is Q2.
-Refer to Figure 5-5.If,because of an externality,the economically efficient output is Q2 and not the current equilibrium output of Q1,what does D2 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 social and external benefits

Understand the differentiation between internal and external environmental influences on leadership.

Comprehend the characteristics and false premises of the skills approach to leadership.

Identify the competencies and outcomes as outlined in the skills model.

Apply Katz's model to identify required leadership skills at different management levels.

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Definitions:

Trade Surplus

A Trade Surplus occurs when the value of a country's exports exceeds the value of its imports within a certain period.

Trade Deficit

A situation where a country's imports exceed its exports.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others, leading to specialized trade benefits.

Special Natural Endowment

Unique natural resources or advantages that a country or region possesses, which can provide a competitive edge in certain industries or sectors.