Social costs are the full resource costs of an economic activity, including any externalities such as pollution or loss of natural resources. Private costs only include the costs borne by the producer and may not take into account these externalities, meaning social costs are usually greater than private costs. Therefore, options B, C, and D are incorrect.

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Social Costs Are

Question 55

Multiple Choice

Social costs are:

A) The full resource costs of an economic activity.
B) Usually less than private costs.
C) The costs of an economic activity borne by the producer.
D) Always less than private costs.

Correct Answer: