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:

Reciprocity Norm

Social rule emphasizing the expectation to respond in kind to others' actions, fostering cooperation and fairness in human interactions.

Superordinate Goals

Objectives shared and valued by multiple groups, which can help to reduce conflict by aligning interests and encouraging cooperation.

Hutu Militia

Ethnic-based groups in Rwanda, notable for their leading role in the 1994 genocide against the Tutsi population.

Superordinate Goals

Common objectives that surpass personal disagreements and necessitate collaboration among individuals.