multiple choice help (1 Viewer)

[osak23]

this is from 2011 hsc

http://www.boardofstudies.nsw.edu.au/hsc_exams/hsc2011exams/pdf_doc/2011-hsc-exam-economics.pdf


i need help on question 20

the answer is C

do you use the negative externalities graph ( how private supply curve is lower than social supply curve) to figure it out or..??

 

[OzKo]

If you take into account the social cost of producing a good, this will monetise the cost, thus decreasing how much a supplier is willing to supply at a given price. This accounts for the increase in price.

Demand does not change as a result of this cost, thus your standard S&D curve will show that quantity decreases as the equilibrium has moved downwards.

 

[osak23]

ah k thanks

and also
which one isnt an economic cost of income inequality?
1. a fall in the level of utility or
2.an increase in labour force mobility or
3.an increase in expenditure on conspicious consumption or
4. a fall in total consumption

 

[deswa1]

ah k thanks

and also
which one isnt an economic cost of income inequality?
1. a fall in the level of utility or
2.an increase in labour force mobility or
3.an increase in expenditure on conspicious consumption or
4. a fall in total consumption

This is a benefit not a cost. All the others are costs

 

[osak23]

thanks!