If the Social Cost of Producing a Good or Service

question 9

Multiple Choice

If the social cost of producing a good or service exceeds the private cost,

• A)a positive externality exists.
• B)the sum of consumer surplus and producer surplus is maximised.
• C)the market achieves economic efficiency.
• D)a negative externality exists.

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Definitions:

Portable Benefits

Benefits that can be retained by employees even when they change employers, promoting flexibility and job mobility.

Profit-sharing Programs

Compensation strategies where employees receive a share of the company's profits, providing an incentive for performance and productivity.

Risks

Potential events or circumstances that could lead to negative outcomes, affecting objectives negatively.

Off-the-job Paid Leaves

Time off from work that employees are granted for various reasons, such as vacation, illness, or personal matters, with compensation.