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:

1840s

A decade during the 19th century characterized by significant political, social, and technological changes worldwide, including the widespread use of the telegraph and the growth of the abolition movement.

National History

The recorded events, developments, and narratives that form and define the identity, heritage, and past of a nation or country.

Empires

Extensive groups of states or countries ruled over by a single monarch, an oligarchy, or a sovereign state.

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