If the Social Cost Is Greater Than the Private Cost

question 34

Multiple Choice

If the social cost is greater than the private cost in a particular market,the socially optimal equilibrium will be at a quantity:

• A) greater than the private level.
• B) equal to the private level.
• C) less than the private level.
• D) greater than or less than the private level, depending on the size of the external costs.

---

Definitions:

Calorie Intake

The total number of calories consumed through eating and drinking in a given period.

Anorexia Nervosa

A severe mental health disorder characterized by an intense fear of weight gain and a distorted body image, leading individuals to eat very little and see themselves as overweight.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a comprehensive classification of mental disorders published by the American Psychiatric Association.

Anorexia Nervosa

A psychological disorder involving an obsessive desire to lose weight by refusing to eat and a distorted body image.