Explain what is meant by liquidity preference

Economists call the difference between what you pay for a good and what you would have been willing to pay for it a(n)

a. budget deficit b. consumer deficit c. consumer marginal benefit d. consumer surplus e. economic benefit

When marginal private benefit is equal to marginal private cost,

A. the activity in question generates no negative externality. B. all negative externalities have been internalized. C. all positive externalities have been internalized. D. all of the above E. a or b