Use the Following to Answer Questions -(Table: Externalities from Parks)Use: Table: Externalities from Parks

question 39

Multiple Choice

Use the following to answer questions : $$\begin{array}{l}\text { Table: Externalities from Parks }\\\begin{array} { c c c } \hline \begin{array} { l } \text { Quantity of } \\\text { Land (acres) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Social } \\\text { Benefit }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Social } \\\text { Cost }\end{array} \\\hline 0 & \$ 225 & \$ 0 \\1 & 200 & 50 \\3 & 150 & 150 \\4 & 125 & 200 \\5 & 100 & 250 \\9 & 0 & 450 \\\hline\end{array}\end{array}$$
-(Table: Externalities from Parks) Use: Table: Externalities from Parks.The table shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park.Suppose that parks result in positive benefits to the community as a whole but that the marginal private benefit that any one individual in the community gets from parks is close to 0.If 1 hectare is dedicated to the park,this outcome is _____ because _____.

• A) efficient;MSB = MSC
• B) efficient;MSB > MSC
• C) inefficient;MSB > MSC
• D) inefficient;MSB < MSC

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Definitions:

Growing Old

The process of aging, marked by the gradual decline in physical and sometimes mental capacity, and the transition through various phases of life towards the end of the lifespan.

Dying Alone

The experience of passing away without the presence or support of loved ones or acquaintances.

Postponing Marriage

Choosing to delay marriage until a later age than traditionally observed.

Lifelong Commitment

A perpetual dedication or obligation to someone or something, often observed in relationships or careers.