Social costs are the costs incurred by society as a whole, including individuals and organizations, whenever a resource-using action takes place. These costs are not always reflected in the market price and can include things like pollution, traffic congestion, and resource depletion.

Solved

Social Costs Are

Question 9

Multiple Choice

Social costs are

A) costs borne by society whenever a resource-using action takes place.
B) costs incurred by government and borne by all taxpayers.
C) costs incurred in governmental welfare programs.
D) external costs minus internal costs.

Correct Answer: