A Good That Has Social Costs That Are Less Than

question 193

Multiple Choice

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

• A) too high.
• B) too low.
• C) just right.
• D) equal to zero.

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Definitions:

Central Bank

A national bank that provides financial and banking services for its country's government and commercial banking system and implements monetary policy.

Money Supply

The whole sum of economic financial assets at a specified time.

Money Supply Growth Rate

The rate at which the total amount of monetary assets available in an economy increases over a specific period.

Long-run Phillips Curve

A concept in economics indicating that in the long run, there's no trade-off between inflation and unemployment, showing a vertical line at the natural rate of unemployment.