Use the Following to Answer Question 121

question 126

Multiple Choice

Use the following to answer question 121:
Figure: Model of a Market for a Common Resource
-(Figure: Model of a Market for a Common Resource) Use Figure: Model of a Market for a Common Resource.The figure shows the intersection of the private supply and demand curves.Without any consideration of the marginal social cost of using a common resource,the quantity of the common resource used at Q will be:

• A) larger than is socially desirable.
• B) smaller than is socially desirable.
• C) efficient.
• D) indeterminate without more information.

---

Definitions:

Geographic Region

A specific area or section of space characterized by a particular set of features, whether natural, man-made, or social.

Dumping

Selling a product abroad for less than charged in the home market or for less than the cost of production

Research and Development Funding

Financial resources allocated for investigative activities with the intention of making discoveries that can help develop new products or services, or to improve existing ones.

Private Sector

The part of the economy that is owned and operated by individuals and private companies, rather than by the government.