In a Situation in Which Internal Costs Differ from Social

question 224

Multiple Choice

In a situation in which internal costs differ from social costs, we say that there exists a(n)

• A) welfare loss.
• B) welfare benefit.
• C) internality.
• D) externality.

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Definitions:

Consumer Dollar

The purchasing power of a consumer's money, indicating the quantity of goods and services it can buy.

Consumer Market

The consumer market refers to the marketplace where individuals and households buy goods and services for personal use.

Trade Surpluses

A situation where a country exports more than it imports, resulting in a positive balance of trade.

Gross Saving Rate

The proportion of total national income that is not spent on consumption or taxes, indicating the amount saved.