A common resource is used efficiently if
A) the output is maximized.
B) marginal social benefit equals marginal social cost.
C) marginal private benefit equals marginal private cost.
D) marginal social benefit is maximized.
B
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Taxing pollution will encourage firms to reduce pollutants dumped in the atmosphere or in streams
a. True b. False Indicate whether the statement is true or false
The basic requirement of money is that it be:
A. authorized as legal tender by the central government. B. backed by precious metals-gold or silver. C. some form of debt or credit. D. generally accepted as a medium of exchange.
The sum of internal and external costs is
A. common property. B. opportunity cost. C. private cost. D. social cost.
Select the letter of the diagram in Figure 28.1 that best represents the effect of each event on the United States wheat market, ceteris paribus: Transport costs for farm products increase. (See Figure 29.4.)
A. a. B. b. C. c. D. d.