The marginal social cost and private cost curves for a particular common property resource are upward sloping
What happens to the gap between teh actual quantity and the socially optimal quantity as the demand for the resource becomes more inelastic? A) Gap widens
B) Gap declines
C) Gap does not change
D) We do not have enough information to answer this question
B
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Free trade
A) helps economic growth by increasing tariffs. B) hurts economic growth because foreigners are not bound by the same patent laws as we are. C) helps economic growth by encouraging the sharing of technology and industrial ideas. D) hurts economic growth because foreign countries can produce goods with lower labor costs.
Currently kidneys are allocated based on the needs of each perspective recipient, their blood type, and the urgency of their case. An alternative way to allocate kidneys is to go by the order in which patients were placed on the waiting list
In that case, the allocation of resources is made using A) market price. B) auction. C) first-come, first-served. D) personal characteristics.