A Resource Is Something That

question 11

Multiple Choice

A resource is something that

• A)is used to produce goods and services
• B)is provided by nature, not made by society
• C)exists in unlimited quantities
• D)must be produced by a firm
• E)consumes goods and services

---

Definitions:

Marginal Social Cost

The additional cost incurred by society as a whole due to the production of one more unit of a good or service.

Damage Cost

The monetary cost associated with the harm done to goods in an economy, which can result from disasters, accidents, or intentional acts.

Negative Externality

An adverse effect suffered by a third party as a result of an economic transaction in which they had no involvement.

Internalize

The process of incorporating the cost of externalities into the decision-making process of firms or individuals.