Use the Following to Answer Questions

question 136

Multiple Choice

Use the following to answer questions:
-(Table: Externalities from Parks) The table shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park. If 5 acres is dedicated to the park, the park is:

• A) too large.
• B) the socially optimum size.
• C) too small.
• D) the efficient size.

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Definitions:

Balance Of Payments

A summary of all the financial transactions that take place between the individuals, firms, and governmental units of one nation and those of all other nations during a year.

Floating Exchange Rates

Currency values that fluctuate in response to the foreign exchange market without intervention by government or central banks.

Central Banks

The principal monetary authority responsible for overseeing the monetary system, issuing currency, and implementing economic policies of a country or monetary union.

IMF

International Monetary Fund, an international organization aiming to foster global monetary cooperation, secure financial stability, and facilitate international trade.