Suppose That Everyone Prefers to Live in a Society Without

question 406

Multiple Choice

Suppose that everyone prefers to live in a society without poverty. Further suppose that some private charities are successful in reducing poverty. People who do not contribute to the charities

• A)receive no external benefit from private antipoverty programs.
• B)decrease the reliance of individuals on antipoverty programs.
• C)can free ride on the generosity of others.
• D)are most likely to be in favor of government-sponsored programs.

Understand the role of environmental economics in addressing external costs and benefits.

Grasp the relationship between marginal costs, marginal benefits, and efficient production levels.

Differentiate between marginal private cost and marginal social cost.

Identify examples of externalities in daily life and their impact on society.