In the Equilibrium for a Common Resource with No Government

question 55

Multiple Choice

In the equilibrium for a common resource with no government regulation,

• A)marginal social benefit is greater than marginal social cost.
• B)marginal social benefit equals marginal social cost.
• C)marginal social benefit is less than marginal cost.
• D)marginal social benefit is greater than marginal cost.
• E)marginal social benefit equals marginal cost.

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Definitions:

Rawlsian

Pertaining to the philosophical ideas of John Rawls, especially his theory of justice which emphasizes fairness and the "veil of ignorance" principle in ethical decision making.

Utilitarian

A philosophical theory that suggests an action is right if it leads to the greatest happiness for the greatest number of people.

Paternalism

The practice or policy of limiting someone's freedom or making decisions for them in their supposed best interest.