To Find the Social Cost of an Action, Add Together

question 209

Multiple Choice

To find the social cost of an action, add together

• A) the external and accounting costs.
• B) the private costs and the internal costs.
• C) the external costs and the internal costs.
• D) the internal costs and the private opportunity costs.

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Definitions:

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not full control over that company.

Net Income

The total profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.