For the efficient pricing rule for private goods to hold: a. marginal cost should equal marginal revenue b. the consumption of a private good cannot be restricted to given individuals c. private goods need to be wholly divisible amongst individuals d. price must equal marginal cost 20. It is vital that government manages its spending prudently as excessive expenditure growth can: a. lead to rising general prices and stifle private investment b. create jobs to relieve unemployment pressures in the economy c. promote capital inflows that drive investment expenditure d. promote or obstruct efficiency and equity. 21. Government can cover a budget deficit by: a. raising carbon tax rates b. Increasing money supply c. borrowing via the financial markets d. deregulating natural monopolies that are inefficient and consume taxpayer funds