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.

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Definitions:

Medicare

A federal health insurance program in the United States for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease.

Payroll Tax

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Social Insurance Tax

Taxes imposed on employees and employers to fund public insurance programs, such as social security, health care, and unemployment benefits.

Social Security

Social Security is a government system that provides financial assistance to people with an inadequate or no income, primarily the elderly, disabled, and survivors.