Practise calculating private, external and social costs or benefits, locating market and social optima and evaluating externalities and projects with welfare-loss and…
Some multinational oil companies extracting oil in developing countries are now required to repair the damage they do to the environment.
What best describes the total costs incurred by the oil companies in such circumstances?
external costs
private costs plus external costs
social costs plus external costs
social costs plus private costs
B
What is equivalent to social benefits?
the amount that the government spends on social security benefits
the benefit gained by society from total government spending
the benefit to third parties from household consumption of a good
the private and external benefits from household consumption of a good
D
A medical team provides vaccinations for children to prevent an outbreak of an infectious disease.
Why would this be described as a positive externality?
Additional benefit might be gained as the disease no longer spreads.
Any kind of medical help will improve the condition of the children.
No action would be taken unless the medical team intervened.
The social benefits of vaccination are less than the social costs.
A