Economics 9708 · AS & A Level · 7.4

7.4 — practice question

Under what circumstances will an economic activity generate an external cost?

  • Awhen its social cost minus its private cost is negative
  • Bwhen its social cost minus its private cost is positive
  • Cwhen its social cost minus its social benefit is negative
  • Dwhen its social cost minus its social benefit is positive

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