The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. There is no external benefit nor external cost. The demand curve for chocolate is the same as the
A) marginal social cost curve of chocolate.
B) marginal social benefit curve of chocolate.
C) opportunity cost curve of chocolate.
D) marginal social benefit curve minus the marginal social cost curve of chocolate.
B
You might also like to view...
The principle of comparative advantage helps explain trade between nations.
Answer the following statement true (T) or false (F)
If GDP per capita rises by 2% between 2015 and 2016, which of the following is necessarily true?
A) The population has increased, but by less than 2%. B) The population has decreased. C) Real GDP has risen by more than 2%. D) None of the above is necessarily true.
The opportunity cost of providing a public good to an additional individual is
A) infinite. B) zero. C) impossible to determine. D) high because of the exclusion principle.
The concepts of comparative advantage, specialization, and trade:
A. can be useful in explaining why countries import and export certain goods. B. can be useful in explaining why individuals typically work at one job, and buy the other goods and services they need. C. can be useful in explaining why we allow ourselves to be interdependent on others. D. All of the statements are true.