Which Term Refers to the Social Cost of Production Being

question 93

Multiple Choice

Which term refers to the social cost of production being greater than the private cost?  

• A) positive externality 
• B) negative externality 
• C) public good 
• D) private good

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Definitions:

Ordinary Loss

A loss incurred in the normal operation of a business, which can be used to reduce other taxable income on an owner's tax return.

Itemized Deductions

Expenses that taxpayers can subtract from their taxable income, detailed on Schedule A of the tax return.

AGI

Adjusted Gross Income, a measure of income calculated from your gross income and used to determine how much of your income is taxable.

Qualified Mortgage Interest

Interest paid on a mortgage that is eligible for tax deduction within the limits set by the IRS.