Which of the Following Statements Best Defines Private Costs

question 223

Multiple Choice

Which of the following statements best defines private costs?

• A) They are internal in the sense that the firm or household must explicitly take them into account.
• B) They are costs borne by people other than those who commit the action.
• C) They are synonymous with social costs.
• D) They represent explicit costs incurred by business firms in the private sector.

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Definitions:

Abstract Thought

The ability to think about objects, principles, and ideas that are not physically present.

Concrete Operations

A stage in Piaget's theory of cognitive development, typically occurring from age 7 to 12, where children gain the ability to think logically about concrete events.

Logical Operations

Mental processes that follow systematic patterns of thinking, allowing for problem-solving and reasoning based on established rules.

Abstract Thinking

The ability to think about objects, principles, and ideas that are not physically present, involving complex thought processes like analysis and synthesis.