When Social Costs of an Activity Exceed Private Costs

question 93

Multiple Choice

When social costs of an activity exceed private costs

• A) a market failure exists.
• B) there is a tendency for resources to be under-utilized.
• C) this means that resources are being efficiently used.
• D) the actual price is above the efficient price.

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Definitions:

Climbing the Agenda

The process of prioritizing issues or topics to gain attention or resources within an organization or society.

501(c)(3)

A section of the U.S. Internal Revenue Code that provides a tax exemption for nonprofit organizations that are charitable, religious, educational, scientific, or literary in nature.

Lobbying

The act of attempting to influence decisions made by officials in a government, most often legislators or members of regulatory agencies.

Without Restriction

Condition where there are no limitations or constraints imposed on the use, distribution, or manner of an action.