If a Government Action Is Designed to Achieve Efficiency,then the Action

question 91

Multiple Choice

If a government action is designed to achieve efficiency,then the action must have the market produce the amount of output so that the

• A) marginal private cost equals the marginal private benefit.
• B) marginal social cost equals the marginal social benefit.
• C) marginal external cost equals the marginal external benefit.
• D) marginal private cost equals the tax.
• E) marginal social benefit exceeds the marginal social cost by as much as possible.

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Definitions:

ADH

Antidiuretic Hormone, a hormone that helps regulate water balance in the body by controlling the water concentration of urine.

Urine Output

The amount of urine expelled from the body, used as an important indicator of kidney and overall health.

Blood Pressure

The force of circulating blood on the walls of the arteries, a critical indicator of cardiovascular health.

Diencephalon

A structure that includes the thalamus and the hypothalamus. It is located between the cerebral hemispheres and is superior to the brain stem.