If a Market Solution Provides Greater Marginal Social Costs Than

question 233

Multiple Choice

If a market solution provides greater marginal social costs than marginal social benefits, then:

• A) a positive externality is present.
• B) a negative externality is present.
• C) no net externality is present.
• D) any externality has already been internalized.

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Definitions:

Social Capital

Social capital refers to the networks of relationships among people who live and work in a particular society, enabling that society to function effectively through mutual trust and cooperation.

Cultural Capital

Refers to the non-financial social assets that promote social mobility beyond economic means, including education, intellect, style of speech, dress, or physical appearance.

Myths

Traditional stories or legends that serve to explain natural phenomena, the origins of human social practices, or beliefs and values of a culture.

Poverty

describes the condition where individuals or communities lack financial resources or access to basic needs essential for maintaining a minimal standard of living.