Suppose That at Current Consumption Levels, the Marginal Social Cost

question 57

Multiple Choice

Suppose that at current consumption levels, the marginal social cost of using the Los Angeles freeway system is $25 while the marginal social benefit is $15. In this instance, government officials should:

• A) take actions to decrease use of the freeway system.
• B) take actions to increase use of the freeway system.
• C) take no actions to change use of the freeway system.
• D) build more freeways.

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Definitions:

Impulse

A sudden urge or desire to act or a brief electrical charge that travels through the nerves.

Medulla Oblongata

The lower portion of the brainstem responsible for regulating vital functions, such as heart rate, breathing, and blood pressure.

Skull

The bony structure forming the head in vertebrates, supporting the structures of the face and protecting the brain.

Death

The permanent cessation of all biological functions that sustain a living organism.