A benevolent social planner would prefer that the output of good x be decreased from its current level if, at the current level of output of good x,
a. social value = private value = private cost < social cost.
b. private cost < social cost = private value = social value.
c. social cost = private cost = private value < social value.
d. social cost = private cost = private value = social value.
a
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Among the rationales for state owned enterprises is
(a) existence of monopoly. (b) the need for capital formation. (c) desirability of national control over strategic sectors of the economy. (d) all of the above. (e) none of the above.
Which of the following are NOT contractual savings institutions?
A) life insurance companies B) credit unions C) pension funds D) state and local government retirement funds
The actual government budget deficit ________ be used to determine the effectiveness of discretionary fiscal policy actions because ________
A) cannot; it excludes non-discretionary spending changes B) can; it includes non-discretionary spending changes C) cannot; it includes non-discretionary spending changes D) can; it excludes automatic stabilization expenditures
In order to raise the most revenue, the government is better off taxing the producers of a good for which demand is elastic
Indicate whether the statement is true or false