Social costs are
A) costs that are borne by the government.
B) the full cost borne by society whenever a resource use occurs.
C) borne by individuals who incur them.
D) another term for external costs.
B
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A fiscal policy designed for maximum stimulus of economic growth must discourage current ________ and thus makes for, at least in the short run, a ________ even income distribution
A) consumption, less B) consumption, more C) private saving, less D) private saving, more
To totally internalize an externality, a government can levy a tax related only to the physical quantity of pollution if
A) the economic damages associated with the pollution are different across different locations. B) the economic damages are too large to be determined. C) the economic damages associated with the pollution are the same across different locations. D) the economic damages are zero.