When All Costs and Benefits of a Transaction Are Borne

question 46

Multiple Choice

When all costs and benefits of a transaction are borne by the participants of that transaction:

• A)the market outcome will be inefficient.
• B)then private costs and social costs are identical.
• C)negative externalities exist.
• D)positive externalities exist.
• E)the private costs are more than the social costs.

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Definitions:

Cultural Differences

The variation in social norms, values, customs, and practices observed among groups of people from different backgrounds.

Behavioral Differences

Variations in actions and reactions among individuals or groups, often influenced by biological, psychological, and social factors.

Ethnic Groups

Communities or populations sharing a common culture, ancestry, language, or national origin.

Ethnic Groups

Ethnic Groups are categories of people who identify with each other based on common language, ancestry, culture, history, or society.