The Total Social Benefit of Automobiles Equals the Total Social

question 19

Multiple Choice

The total social benefit of automobiles equals the total social cost at current annual output. Then it follows that:

• A) the annual output of automobiles is efficient.
• B) the annual output of automobiles exceeds the efficient amount.
• C) less than the efficient annual output of automobiles is produced.
• D) it is not possible to make buyers of automobiles better off without harming sellers.
• E) both a and d

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Definitions:

Cash

Money in the form of coins or banknotes, used for transactions, and considered the most liquid asset.

Credit

A contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date, often with interest.

Asset Account

A type of account that shows the value of all assets a company has, including tangible and intangible items.

Double-Entry System

A fundamental principle of accounting that requires every financial transaction to be recorded in at least two accounts: one debit and one credit, ensuring the accounting equation is always balanced.