The Cost of Producing a Good or Service That Is

question 27

Multiple Choice

The cost of producing a good or service that is paid by people other than the producers is

• A) represented by the supply curve.
• B) an external cost.
• C) represented by the demand curve.
• D) the marginal cost.

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Definitions:

Social Overhead Capital

Infrastructure and public goods provided by the government or public sector, essential for economic activities and societal well-being, such as roads, schools, and hospitals.

Developing Country

A nation with a lower level of industrialization, lower living standards, and lower Human Development Index scores compared to developed countries.

Private Sector

The part of the economy that is run by individuals and companies for profit and is not under direct state control.

Public Sector

The part of the economy composed of government services and enterprises, including infrastructure, education, and healthcare services.