For a common resource, the equilibrium with no government intervention is such that ________ is less than ________
A) marginal private cost; marginal social benefit
B) marginal social benefit; marginal social cost
C) marginal private benefit; marginal social benefit
D) total social benefit; total social cost
A
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"Reagonomics" was consistent with supply-side economics except for the fact that it
a. pushed for lower money growth. b. called for higher total government spending. c. pushed for tax cuts. d. pushed for reductions in nonmilitary government spending.
The Lerner Index is derived from the profit-maximizing condition of a firm
Indicate whether the statement is true or false
For a firm in a perfectly competitive market, a price decrease:
A. lowers the profit-maximizing quantity. B. is unrelated to the profit-maximizing quantity. C. increases the profit-maximizing quantity. D. signifies the firm should leave the market.
Dale is a guitar teacher and Terrence is a tile layer. If Dale teaches Terrence's daughter to play the guitar in exchange for Terrence tiling Dale's kitchen floor,
a. only Dale is made better off by trade. b. only Terrence is made better off by trade. c. both Dale and Terrence are made better off by trade. d. neither Dale nor Terrence are made better off by trade.