1 Private cost are a external costs borne by private firms. b costs borne by pri

ID: 1199334 • Letter: 1

Question

1 Private cost are

a external costs borne by private firms.

b costs borne by private members of society rather than governmental bodies.

c explicit costs rather than implicit costs.

d costs borne solely by the individuals who incur them.

1 Attaining higher and higher levels of air cleanliness causes

a larger and larger increases in per capita incomes.

b additional costs to rise to increasingly high levels.

c larger and larger marginal benefits to society.

d additional costs to fall to lower and lower levels.

3 A good that has social costs that are less than private costs has a quantity that is

a too low.

b equal to zero.

c too high.

d just right.

3 A good that has social costs that are less than private costs has a quantity that is

a too low.

b equal to zero.

c too high.

d just right.

1. Private cost are (option d) cost borne solely by the individuals who incur them.

2. Attaining higher and higher levels of air cleanliness causes (option c) larger and larger marginal benefits to society.

3. A good that has social costs that are less than private costs has a quantity that is (option c) too high.

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