Costs that are borne solely by the individuals who incur them are called

Question

Quizplus · Accepted Answer

Private costs are costs that are borne solely by the individuals who incur them, such as the cost of buying food, clothes, and housing. These costs are not shared by society as a whole and are not subject to externalities. Therefore, option A is the correct choice. Option B (public costs) refers to costs that are borne by society as a whole, such as the cost of public goods and services like education and healthcare. Option C (social costs) refers to the total cost of an activity, including both private costs and external costs. Option D (external costs) refers to costs that are not borne by the individuals who incur them, such as the cost of pollution and environmental damage.

Costs That Are Borne Solely by the Individuals Who Incur