Suppose That at Current Consumption Levels, the Marginal Social Cost

question 16

Multiple Choice

Suppose that at current consumption levels, the marginal social cost of using the Kansas City freeway system is $15 while the marginal social benefit is $18. 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:

Northern Factories

Industrial manufacturing entities located in the northern part of the United States, particularly prominent during the Industrial Revolution and the Civil War era.

Wage Slaves

Individuals who are seen as bound to their employment due to the necessity of earning wages to meet basic living expenses, with minimal options to pursue other opportunities.

Slave-based Economy

An economic system heavily reliant on the forced labor of enslaved individuals, particularly prevalent in historical contexts such as in the Southern United States before the Civil War, where agriculture was the dominant sector.

Liberty

Being unrestrained in society by authoritative sanctions on one's personal behavior, way of life, or political views.