A Benevolent Social Planner Would Prefer That the Output of Good

question 539

Multiple Choice

A benevolent social planner would prefer that the output of good x be increased from its current level if, at the current level of output of good x,

• A)social value = private value = private cost < social cost.
• B)social cost > private value = social value > private cost.
• C)social cost = private cost = private value < social value.
• D)social value = private cost = social cost > private value.

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Definitions:

Random Sample

A sample drawn from a population in a way that gives each individual an equal chance of being selected, used to achieve representativeness.

Service Time

The period required to complete a process or fulfill a request.

Mean Difference

A measure of the average discrepancy or variance between two sets of data or samples, often used in comparative studies.

Confidence Interval

A range of values, derived from sample data, that is believed to contain the true population parameter with a certain level of confidence.