If the social costs of driving an automobile are greater than the private costs of driving an automobile, then
A) the external costs of auto driving exceed the social costs of auto driving.
B) the external costs of auto driving exceed the internal costs.
C) the price of automobile driving is too high.
D) either people drive their autos too much or more funds should be spent on reducing air pollution.
Answer: D
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A) opportunity cost approach. B) expenditure approach. C) added cost approach. D) income approach.
Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for Fruitopia, a soft drink
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