If the social costs of refining oil are greater than the private costs of oil refining, then
A) the external costs of oil refining are greater than the social costs of oil refining.
B) users of products that use refined oil are paying too much for the products.
C) there is too much oil refining.
D) the amount of oil refining needs to increase in order to bring social costs and private costs in line with each other.
C
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A balance of payments surplus occurs if
A) the supply of a nation's currency is equal to the demand for the currency at the current exchange rate. B) exports exceed imports. C) the supply of a nation's currency exceeds the demand for the currency at the current exchange rate. D) the demand for a nation's currency exceeds the supply of the currency at the current exchange rate.
Trade restrictions are often motivated by a desire to save domestic jobs threatened by competition from imports. Which of the following counter-arguments is made by economists who oppose trade restrictions?
A) Trade restrictions benefit consumers in the short run but not in the long run. B) Statistics show that trade restrictions actually do not save jobs. C) Consumers pay a high cost for jobs saved through trade restrictions. D) Trade restrictions have a limited impact because most Americans prefer domestic goods over imports.