The social costs of an activity are equal to its:
A) net cost to society.
B) private costs plus any negative externalities.
C) negative externalities minus its positive externalities.
D) net benefit to society minus any negative externalities.

Question

Quizplus · Accepted Answer

The social costs of an activity include its private costs—the costs directly incurred by the entity undertaking the activity—and any negative externalities, which are the indirect costs imposed on others not involved in the activity.

The Social Costs of an Activity Are Equal to Its