External Costs Occur Because

question 22

Multiple Choice

External costs occur because

• A)Private costs do not reflect the full costs to society.
• B)Government failure increases costs for the firm.
• C)All costs are absorbed by the firm.
• D)Firms make a choice other than the most cost-efficient production method.

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Definitions:

Working Class

A social group characterized by employment in blue-collar jobs and typically associated with lower incomes and limited access to resources.

Private Property

A legal designation for the ownership of property by non-governmental legal entities or individuals.

Conflict Theory

A sociological perspective that emphasizes the role of power differentials and social conflicts in shaping social life and societal structures.

Karl Marx

A 19th-century philosopher, economist, and sociologist known for his critical analysis of capitalism and his influential role in the development of communism.