Costs of Production Borne Not by the Enterprise That Causes

question 47

Multiple Choice

Costs of production borne not by the enterprise that causes them but by society are called:

• A) internal diseconomies.
• B) internal economies.
• C) benefits.
• D) externalities.

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Definitions:

Economic Individuals

Persons or entities that make decisions to maximize satisfaction or profits, based on the principles of economics.

Bit More

A small additional amount or degree.

Opportunity Cost

The trade-off of not seizing the next most favorable opportunity when faced with a decision.

Economics Club

A group or organization often found in academic institutions, where members discuss economic theories, current events, and sometimes engage in related projects or competitions.