In the above figure, if the market is unregulated, the equilibrium quantity is

The most volatile component of GDP over the business cycle is

a. consumption. b. net exports. c. investment. d. government purchases.

A benevolent social planner would prefer that the output of good x be increased from its current level if, at the current level of output of good x,

a. social value = private value = private cost < social cost. b. social cost > private value = social value > private cost. c. social cost = private cost = private value < social value. d. social value = private cost = social cost > private value.