An External Diseconomy Results in a Socially Nonoptimal Use of a Resource

question 31

Multiple Choice

An external diseconomy results in a socially nonoptimal use of a resource because

• A) the private costs exceed the social costs.
• B) it prohibits economic growth.
• C) the resource user does not bear the full cost of his or her actions.
• D) firms will not maximize their profits.
• E) too little of the resource will be used.

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Definitions:

Senate Majority Leader

The chief spokesperson and strategist for the majority party in the U.S. Senate, responsible for legislative planning and party agenda.

President Pro Tempore

A senior member of the Senate who presides over the chamber in the absence of the Vice President, often based on seniority.

Senate

An assembly or a chamber in a bicameral legislature, often the higher or upper house, responsible for making and passing laws.

Equal Population

A principle aiming to ensure that each district or division has a relatively similar number of inhabitants for purposes like electoral representation.