The above figure shows the marginal benefit and marginal cost curves for a public good. The efficient quantity is

Which of the following should not be counted in a cost-benefit analysis?

a. direct benefits and costs b. real secondary benefits c. technological secondary costs d. pecuniary benefits e. intangibles

The income effect of an increase in the price of hominy grits (an inferior good) is a(n)

a. decrease in the demand for hominy grits b. decrease in the quantity demanded of hominy grits c. increase in the demand for hominy grits d. increase in the quantity demanded of hominy grits e. new demand curve because everything else is no longer constant