At the Time the Hypothesis Was Suggested, What Major Problem

question 32

Multiple Choice

At the time the hypothesis was suggested, what major problem was identified with the idea that the Sun was powered by gravitational contraction?

• A)This process could not possibly lead to the observed power output of the Sun.
• B)Contracting objects cool down rather than heat up.
• C)19th century astronomers should have been able to measure the required change in the Sun's size.
• D)This process would power the Sun for only about 25 million years, but geologists already had evidence the Earth was much older than that.

Explain the difference between marginal social benefit (MSB) and marginal social cost (MSC).

Analyze scenarios to determine socially optimal levels of public goods and externalities.

Describe the concept of a Pigouvian subsidy and its application for external benefits.

Understand the implications of technology spillover in relation to positive externalities.

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Definitions:

One Page

Typically referring to documents, especially resumes or brief reports, that are concise enough to fit on a single page with the aim of clear and immediate communication.

Two Pages

Typically refers to a document or written material consisting of two sides of a sheet of paper.

Negative External Effects

Negative impacts of an economic activity on third parties who are not directly involved in the transaction.

Efficient Outcome

A situation where resources are allocated in the most effective manner, maximizing benefits and minimizing waste.