Figure 10-6 ​

question 64

Multiple Choice

Figure 10-6
​
-Refer to Figure 10-6. If 325 units of plastics are produced and consumed, then the

• A)social optimum has been reached.
• B)market equilibrium has been reached.
• C)government must have imposed a corrective tax to guide the market to this outcome.
• D)government must have offered a corrective subsidy to guide the market to this outcome.

---

Definitions:

Economically Efficient

A situation where resources are allocated in a way that maximizes the net benefits to society or achieves the desired output with the least possible input.

Tragedy of the Commons

A scenario where individuals, guided solely by their personal gain, independently exploit or degrade communal assets, despite such actions being against the collective long-term benefits.

Grazing Land

Land used for the purpose of raising livestock, where animals feed on naturally grown grasses and other plants.

Tragedy of the Commons

A situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resources through their collective action.