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:

Opportunity Cost

In decision-making, the loss incurred by not opting for the immediate next best alternative.

Speed-Reading Course

A speed-reading course is a program designed to teach techniques that increase the speed at which an individual reads without significantly compromising comprehension or retention.

Leisure Time

The time available for ease and relaxation outside of compulsory activities such as work and essential household tasks.

Using Resources

The process of employing available assets and materials to achieve desired goals and objectives.