What are social costs? How do they differ from private costs?
What will be an ideal response?
Social costs are costs borne by society whenever a resource use occurs. Social costs include private costs plus external costs, so when external costs are zero, social costs are the same as private costs.
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Increases in net investment generally result in
A) higher levels of capital stock and lower levels of depreciation. B) lower levels of capital stock and higher levels of depreciation. C) lower levels of capital stock and lower levels of depreciation. D) higher levels of capital stock and higher levels of depreciation.
What are the two key features of perfectly competitive markets in the Classical Model?
What will be an ideal response?
The United States was taken off the gold standard by
A) President Lyndon Johnson. B) President Richard Nixon. C) the Federal Reserve Chairman. D) President Jimmy Carter.
An efficient distribution of goods requires that
a. everyone gets an equal share of each good. b. marginal cost equal marginal utility for the last unit produced. c. each person derives the same total utility from the good. d. since tastes differ, every person pays a different price in accordance with different marginal utilities.