Social costs refer to the full cost borne by society whenever a resource use occurs, including costs borne by individuals, businesses, and the government. It takes into account not just the private costs incurred by the individuals directly involved in the transaction, but also the external costs that affect the well-being of society as a whole.

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Social Costs Are

Question 52

Multiple Choice

Social costs are

A) costs that are borne by the government.
B) the full cost borne by society whenever a resource use occurs.
C) borne by individuals who incur them.
D) borne by no one in society.

Correct Answer: