Scelta multipla
Globalization is criticized because it increases the power of which of the following groups?
164
views
7. Externalities
Public Solutions to Externalities
Scelta multipla
Use this diagram to answer the following questions. PD is private demand. SD is social demand.
The figure above contains:
A
A positive externality
B
A negative externality
C
Both positive and negative externalities
D
No externalities
Guida verificata passo dopo passo1
Identify the curves in the graph: The graph shows two supply curves (S and SD) and two demand curves (PD and the implicit demand curve).
Understand the concept of externalities: Externalities occur when a third party is affected by the production or consumption of a good, either positively or negatively.
Analyze the supply curves: The curve labeled 'S' represents the private supply curve, while 'SD' represents the social supply curve, which includes external costs or benefits.
Determine the type of externality: If the social supply curve (SD) is to the right of the private supply curve (S), it indicates a positive externality, as the social cost is lower than the private cost.
Conclude based on the graph: Since the social supply curve (SD) is to the right of the private supply curve (S), the graph represents a positive externality.
Video correlati
Pratica correlata
