Use the Following to Answer Questions

question 125

Multiple Choice

Use the following to answer questions:
Figure: Marginal Private Benefits and Marginal Social Benefits
-(Figure: Marginal Private Benefits and Marginal Social Benefits) Look at the figure Marginal Private Benefits and Marginal Social Benefits. One way for the government to achieve this socially optimal level is by:

• A) imposing a per-unit tax equal to P₁ - P_2.
• B) providing a per-unit subsidy of P₀ - P_2.
• C) mandating consumption at output level Q_1.
• D) leaving the quantity at the initial private market-clearing quantity and price.

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Definitions:

Total Water Use

The aggregate volume of water utilized for various purposes such as agricultural, industrial, and domestic use within a specific period.

U.S. Geological Survey

The U.S. Geological Survey is a scientific agency of the United States government that studies the landscape of the U.S., its natural resources, and the natural hazards that threaten it.

United States

A country in North America known for its significant cultural, economic, and political influence globally.

Fertility Rates

The average number of children born to a woman over her lifetime within a specific population.