Which of the Following Statements About Private and Social Costs

question 16

Multiple Choice

Which of the following statements about private and social costs is TRUE?

• A) Social costs include externalities.
• B) Private cost do not include externalities.
• C) Social costs are never smaller than private costs.
• D) All of the above.

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Definitions:

Reciprocity Norm

A social rule that suggests people should return the favors or benefits that they have received from others.

Social Prescriptions

Expectations and norms dictated by society regarding how individuals should behave.

Social Contagion

The spread of ideas, attitudes, or behaviors through a group or society, mirroring the infectious process of a disease.

Norm

A standard or rule that is expected to be followed by members of a society, guiding behaviors and establishing expectations.