To Find Social Costs

question 208

Multiple Choice

To find social costs,

• A) internal and private costs have to be added together.
• B) internal and external costs have to be added together.
• C) internal and implicit costs have to be added together.
• D) internal and production costs have to be added together.

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Definitions:

Command Systems

Economic systems in which a centralized authority, typically the government, makes all decisions regarding the production and distribution of goods and services.

Market Systems

The network of buyers, sellers, and other actors that come together to trade in a given product or service, governed by supply and demand.

Capital Resources

The assets, both physical and financial, that businesses use to produce goods and services; these can include machinery, buildings, and technology.

Private Property

A system where individuals and companies own and control their own possessions and assets.