The Difference Between Private Cost and Social Cost Is That

question 143

Multiple Choice

The difference between private cost and social cost is that

• A)social cost only considers the external cost borne by society.
• B)social cost only considers the cost borne by people other than the producer.
• C)private cost only considers the cost borne by producers of the good.
• D)social cost also includes any external benefit whereas private cost excludes all external benefits.
• E)There is no difference;the terms refer to the same cost.

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Definitions:

Depository Institutions Deregulation

The legislative measures taken to reduce regulation over banks and other depository institutions to enhance their ability to compete and innovate.

Monetary Control Act

A law intended to regulate banking and manage the money supply, possibly referring to specific legislation like the Monetary Control Act of 1980 in the United States, which influenced the Federal Reserve's control over monetary policy.

Glass-Steagall Act

A U.S. law enacted in 1933, which separated commercial banking from investment banking, repealed in 1999.

1999 Repeal

Refers to the revocation of a law or act; often mentioned in economic contexts, such as the repeal of financial regulations or acts in 1999.