A Good Which Has Social Costs That Exceed Private Costs

question 252

Multiple Choice

A good which has social costs that exceed private costs has a price

• A) equal to marginal social cost.
• B) that is too low.
• C) that is too high.
• D) that is inefficient because price exceeds marginal social cost.

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Definitions:

Silica

A hard, unreactive chemical compound of silicon and oxygen, used in various industries and forming the major constituent of sand.

Diatoms

Microalgae with silica shells, found in almost every aquatic environment and play a crucial role in oxygen production.

Pseudopodia

Temporary, amoeba-like projections of eukaryotic cell membranes that are used for movement and feeding.

Amoeboids

Organisms characterized by their ability to change shape due to the movement of their pseudopodia, aiding in locomotion and feeding.