Which of the Following Statements Is Correct

question 102

Multiple Choice

Which of the following statements is correct?

• A)Marginal social cost is the share of marginal cost caused by an activity that is paid for by the persons who carry out the activity.
• B)Marginal private cost is the share of marginal cost caused by an activity that is borne by persons other than those who carry out the activity.
• C)Marginal social cost is the sum of marginal private cost and incidental cost.
• D)Marginal private cost and incidental cost are one and the same.

---

Definitions:

Trade Deficit

An occurrence where the total value of a country's imports surpasses the value of its exports, creating a negative trade balance.

China

A country in East Asia, the world's most populous nation, with a long history, rich culture, and significant global economic influence.

Overall

Encompassing everything or in general; a term not specific to economics but often used to imply a holistic or comprehensive perspective.

Substantially

To a great or significant extent, often used to signify the importance, size, or degree of something.