Multiple Choice
External costs can be defined as
A) the difference between costs to the producer from production and the costs to society from the production of a good.
B) the difference between the costs to society and the private benefits of production.
C) the difference between the private costs of production and the private benefits of production.
D) the difference between the marginal social costs and marginal benefits.
Correct Answer:

Verified
Correct Answer:
Verified
Q8: Describe the consequences to the market when
Q9: Social market costs include<br>A)private marginal costs.<br>B)the negative
Q10: This allows the use of dollars as
Q11: Pollution is an example of<br>A)a positive externality.<br>B)a
Q12: The government sells permits that allow producers
Q14: When a resource has no direct price<br>A)overuse
Q15: A system of pollution reduction that allows
Q16: A negative externality occurs when<br>A)costs of production
Q17: Marginal costs born only by the producer
Q18: A negative to the command-and-control approaches to