A Benevolent Social Planner Would Prefer That the Output of Good

question 41

Multiple Choice

A benevolent social planner would prefer that the output of good x be decreased from its current level if, at the current level of output of good x,

• A)social value = private value = private cost < social cost.
• B)private cost < social cost = private value = social value.
• C)social cost = private cost = private value < social value.
• D)social cost = private cost = private value = social value.

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Definitions:

Hemoglobin

A protein in red blood cells that carries oxygen from the lungs to the rest of the body and returns carbon dioxide back to the lungs to be exhaled.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration. It is naturally present in air and is absorbed by plants in photosynthesis.

Bicarbonate Ions

Ions that act as a buffer in bodily fluids to maintain pH balance and are involved in the carbon dioxide transport and delivery system.

Carbonic Acid

A weak acid formed in solution when carbon dioxide is dissolved in water, playing a significant role in the carbon cycle and respiratory gas exchange.