The Gajet Store Inc

question 24

Multiple Choice

The Gajet Store Inc. started its operations on January 1, 2015. It engages in buying and selling different types of electronic gadgets. The first step in its operating cycle would be to:

• A)collect cash from customers.
• B)sell goods to customers.
• C)purchase inventory from vendors.
• D)record the sales in accounts.

---

Definitions:

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both private costs and external effects.

External Social Cost

Costs of production or consumption that affect individuals not involved in the transaction, often unaccounted for by the market price.

Efficient Level

Describes a state where resources are allocated in the most effective manner, maximizing output and outcomes.

Marginal Social Benefit

The incremental advantage to the community from the consumption or production of an additional unit of a product or service.