If the Social Cost Is Greater Than the Private Cost

question 55

Multiple Choice

If the social cost is greater than the private cost in a particular market, the private equilibrium will exist at a quantity that is _______ the socially optimal level.

• A)equal to
• B)less than
• C)greater than
• D)either greater than or less than

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Definitions:

Principle Of Privity

The Principle of Privity in contract law states that only parties involved in the contract have the right to sue or be sued on that contract, highlighting the exclusivity of contractual obligations and benefits.

Consumer Protection

Laws and regulations designed to safeguard buyers of goods and services against unfair practices.

Legislative Changes

Amendments or enactments made to current laws by a legislative body.

Negotiable Instrument

A transferable document signed by the maker or drawer, promising to pay the holder a sum of money at a future date or on demand.