Social costs and benefits of a business idea

Expenses incurred on the factors of production are known as

• Money

• Cost

• Profit

• Revenue

The producer receives payments from the sale of goods. Such sale proceeds are referred to as ..........................

• Money

• Cost

• Profit

• Revenue

Difference between revenue and cost.

• Money

• Cost

• Profit

• Revenue

Equipment cost is an example of ..............

• Private Cost

• Public cost

• External cost

Emissions that influence the utility of other individuals ..............

• Private Cost

• Public cost

• External cost

Cars and factories generate air pollution that affects people’s health.

• Negative externality

• Positive externality

• Private cost

The existence of external costs can lead to market failure.

• True

• False

If there are external costs in consuming a good, the social costs will be lesser than the private cost.

• True

• False

Examples of social benefits include.

• Novartis Arogya Parivar

• ICICI Bank Ltd’s personal laon

If a good has significant external benefits, then the social benefit will be greater than the private benefit.

• True

• False