A Benevolent Social Planner Would Prefer That the Output of Good

question 41

Multiple Choice

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

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

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Definitions:

Oxygen-demanding Wastes

Wastes that require oxygen for their decomposition, which can deplete oxygen levels in water bodies, affecting aquatic life.

Sewage Treatment

The process of removing contaminants from municipal wastewater, containing mainly household sewage plus some industrial wastewater.

Acid Deposition

The falling of acids and acid-forming compounds from the atmosphere to the earth's surface, often resulting in environmental harm.

Eutrophication

The process by which a body of water becomes excessively enriched with nutrients, leading to plant growth that depletes oxygen in the water, affecting fish and other wildlife.