(A) China and India have reached the peak of the curve

(B)The United States are not at the peak of the curve yet

(C)It suggests that additional greenhouse gases from developing economies can be balanced by a reduction in pollution from highly developed economies

(D) It describes an ‘n’ shaped relationship between income inequality and GDP per capita

(A) Unequivocally Pareto optimal

(B) Potentially efficient

(C)Inefficient

(D)Technically efficient

(A) The total of consumer and producer surplus is higher under perfect competition than under monopoly

(B)Under monopoly, the dead-weight loss is minimized

(C)The consumer surplus under perfect competition is greater than under monopoly

(D)The producer surplus is greater under monopoly than under perfect competition

(A) Marginal benefit equals marginal private cost

(B)Marginal social cost equals marginal external cost

(C)Marginal benefit equals marginal social cost

(D) Marginal benefit equals marginal damage cost

(A) A monopoly will always be Pareto efficient

(B)A perfectly competitive market is not always Pareto efficient

(C)Redistribution of income from producers to consumers can restore Pareto efficiency

(D)The presence of externalities will preclude Pareto efficiency

(A) When marginal social costs are greater than marginal private costs, there is a negative externality

(B)When marginal social benefits are higher than marginal private benefits, governments should subsidize production

(C) When marginal social costs are higher than marginal private costs, governments should tax production

(D)When marginal private costs are equal to marginal private benefits, the level of output is socially optimal

(A) The Coase theorem

(B)The fallacy of composition

(C)The free-rider problem

(D)Non-rivalry

(A) Less than the efficient level of output

(B)The efficient level of output

(C)More than the efficient level of output

(D)So that consumer surplus is zero

(A) When marginal social benefits are lower than marginal private benefits, output is at its optimal level

(B)Loud music is an example of negative benefit externality

(C)Marginal social benefits can never be larger than private social benefits

(D)When marginal social benefits are greater than marginal private benefits, there is a negative externality

(A) Marginal damage cost

(B)Marginal social cost

(C) Marginal external cost

(D)Marginal private cost