Author Question: The difference between the marginal social cost and the private cost of a common property resource ... (Read 41 times)

nelaaney · **on:** Jul 1, 2018

The difference between the marginal social cost and the private cost of a common property resource represents:

A) the social discount rate.
B) a deadweight loss.
C) is generally negative because the people who use the resources assign higher value to them than other members of society.
D) the opportunity cost of reducing the resource by one unit for other members of society.

Question 2

Which of the following is not a cause of market failure?

A) Incomplete information
B) Externalities
C) Individuals acting according to their own self-interest
D) Public goods