Author Question: An external cost in the production of a good creates a difference between the i. costs borne by ... (Read 49 times)

geoffrey · **on:** Jun 29, 2018

An external cost in the production of a good creates a difference between the

i. costs borne by the producer and the costs borne by society in general.
ii. efficient quantity of output and the equilibrium quantity of output.
iii. marginal social cost and the marginal private cost.
A) i only
B) iii only
C) ii and iii
D) i, ii, and iii
E) i and iii

Question 2

Refer to the scenario above. If each family pays 12 of its income as tax every year, the local government follows a(n) ________ tax system.

A) cardinal
B) ordinal
C) progressive
D) proportional