If the Social Cost of an Activity Equals the Private

question 163

Multiple Choice

If the social cost of an activity equals the private cost, what kind of externality exists?

• A) an external cost
• B) an external benefit
• C) There is no externality.
• D) This cannot be determined by the information given.

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Definitions:

World War I

A global conflict that lasted from 1914 to 1918, involving most of the world's great powers, and marked by significant casualties and the introduction of new warfare technologies.

Progressives

People or movements advocating for reform and improvements in society, particularly in terms of social justice, environmental protection, and political integrity.

Vladimir Lenin

A Russian revolutionary leader and politician who was a key figure in the October Revolution of 1917, subsequently leading the Soviet State and founding the ideology of Leninism.

American Neutrality

The policy or stance of the United States regarding its non-involvement or impartiality in the conflicts and wars between other nations, particularly notable in the early 20th century.