If the Social Cost of Producing a Good or Service

question 76

Multiple Choice

If the social cost of producing a good or service exceeds the private cost

• A)a positive externality exists.
• B)the sum of consumer surplus and producer surplus is maximized.
• C)the market achieves economic efficiency.
• D)a negative externality exists.

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Definitions:

Recall Tasks

Memory tasks in which individuals are asked to retrieve previously learned information with minimal cues.

Justice and Fairness

Concepts concerning moral rightness based on ethics, law, rationality, equity, and fairness in social, legal, and economic systems.

Trust

Confidence in or reliance on some quality or attribute of a person or thing, or the truth of a statement.

Leader

An individual who influences and guides others towards achieving a common goal, often possessing qualities such as charisma, vision, and the ability to motivate.