What Is a 'Social Cost' of Production

question 229

Multiple Choice

What is a 'social cost' of production?

• A) The cost of the natural resources used up in production.
• B) The total costs of producing a product, both implicit and explicit costs.
• C) The sum of all costs to individuals in society, regardless of whether the costs are borne by those who produce the products or consume the product.
• D) The cost of the environmental damage created by production.

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Definitions:

Compounded Semi-annually

A method of calculating interest in which interest is compounded to the principal amount semi-annually.

Quarterly Payments

Payments made four times a year at three-month intervals.

Investment Trusts

Collective investment schemes that pool money from investors to purchase a diversified portfolio of assets.

Compounded Quarterly

The process of calculating interest on both the initial principal and accumulated interest over four periods within a year.