3

The social benefits of a public good are obtained graphically by...

vertically multiplying individual marginal benefit curves.

vertically adding individual marginal benefit curves.

horizontally multiplying individual marginal benefit curves.

None of these.

7

In the market for a common property resource, the unregulated market outcome will occur at what point?

When marginal benefits equal marginal costs

When social costs are maximized

When profits per user fall to zero

When revenue per user falls to zero

9

What is the primary difference between economic analyses of climate change that advocate for a significant policy response versus those analyses that suggest a modest response?

The average increase in future temperatures

Whether the analysis considers nonuse benefits

The choice of the discount rate

10

Suppose that the government is using cost-benefit analysis to decide whether to impose a gas tax to reduce carbon emissions and mitigate climate change. A study that uses a low discount rate will probably...

provide support for a large gas subsidy.

None of these answers is correct.

provide support for a small gas subsidy.

provide support for a large gas tax.