If a Product Has Zero External Costs,then

question 293

Multiple Choice

If a product has zero external costs,then

• A) marginal social cost equals marginal private cost.
• B) marginal social cost is greater than marginal private cost.
• C) marginal social cost is less than marginal private cost.
• D) marginal social cost equals zero.
• E) We need more information to determine the relationship between marginal private cost and marginal social cost.

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Definitions:

Disparate Impact

Practices in employment, housing, and other areas that adversely affect one group more significantly than another, even when there is no intentional discrimination.

Occupational Diseases

Illnesses resulting from the conditions or environment of a particular occupation.

Workers' Compensation System

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer.

Employee Polygraph Protection Act

A federal law that prohibits most private employers from using lie detector tests, either for pre-employment screening or during the course of employment.