The Rand Corporation Estimates That External Costs Imposed by Alcohol

Multiple Choice

The Rand Corporation estimates that external costs imposed by alcohol consumption (e.g., deaths caused by drunk drivers) to be 48 cents per ounce consumed.If taxes on alcohol are 23 cents per ounce consumed, then

A) marginal social benefit is greater than marginal social cost.
B) the alcohol taxes are increasing economic inefficiency and dead-weight loss.
C) alcohol consumption is greater than socially optimal.
D) marginal external costs plus marginal private costs are less than price.