Costs that accrue to the total population are called ____ costs. Costs incurred by the producer or consumer who makes the decision are called ____ costs.
A)negative; positive
B)social; private
C)private; social
D)positive; negative

Question

Costs that accrue to the total population are called ____ costs. Costs incurred by the producer or consumer who makes the decision are called ____ costs.
A)​negative; positive
B)​social; private
C)​private; social
D)​positive; negative

Quizplus · Accepted Answer

Social costs refer to the costs that accrue to the total population, while private costs refer to the costs incurred by the producer or consumer who makes the decision. Therefore, option B - social, private - correctly defines the two types of costs. Option A, negative and positive costs, is incorrect as costs cannot be negative or positive. Option C, private and social costs, is partly correct but reverses the definition of the two types of costs. Option D, positive and negative costs, is incorrect as costs cannot be classified as positive or negative.

Costs That Accrue to the Total Population Are Called ____