If the social benefit is greater than the private benefit in a particular market, then the private equilibrium will be at a quantity:
A. greater than the socially optimal level.
B. equal to the socially optimal level.
C. less than the socially optimal level.
D. greater than or less than the socially optimum level, depending on the size of the external costs.
C. less than the socially optimal level.
You might also like to view...
What does a production point beyond the production possibilities frontier represent?
What will be an ideal response?
The term Ceteris paribus means that:
a. the model includes all important variables occurring in the real world. b. all factors which influence the event are changing at the same time. c. one influence is changing and everything else is being held constant. d. the consumer is king.
Fiona's hourly wage decreases from $10 to $8 . Which of the following describes a consequence of the decrease in Fiona's wage?
a. The opportunity cost of Fiona's leisure time has decreased. b. Fiona may choose to work more hours due to the decrease in her wage. c. Fiona may choose to work fewer hours due to the decrease in her wage. d. All of the above are correct.
In an economy with a population of 100 million persons, 40 million hold civilian jobs and 9 million are not working but are looking for jobs. The number counted as unemployed is
A) 91 million. B) 9 million. C) 51 million. D) 40 million. E) 49 million.