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Indicate whether the statements below are true or false by dragging them into the appropriate bin
Indicate whether the statements below are true or false by dragging them into the appropriate bin.
True
Social cost is the sum of private and external costs.
When the production of a good results in pollution, private and social costs are the same Pollution is an example of an external cost. o an external cost.
When the production of a good results in pollution, private and social costs are different. Private costs are costs that the firm is not obligated to disclose to the public.
False
Wages are an example
The terms "social cost" and "external cost" are synonyms.
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