Question : The concept of marginal social cost refers to:

Option 1: The cost incurred by an individual or firm in producing an additional unit of a good or service
 

Option 2: The cost incurred by society as a whole in producing an additional unit of a good or service
 

Option 3: The cost incurred by the government in producing an additional unit of a good or service

Option 4: The cost incurred by consumers in producing an additional unit of a good or service

Question : The opportunity cost of production of a commodity is

Option 1: The cost that the firm could have incurred when a different technique was adopted

Option 2: The cost that the firm could have incurred under a different method of production

Option 3: The actual cost incurred

Option 4: The best alternative output

Question : Why Marginal Opportunity Cost (MOC) is increasing?

Option 1: More and more units of a commodity is sacrificed to gain an additional unit

Option 2: Less and less units of a commodity is sacrificed to gain an additional unit

Option 3: More and more units of a commodity is gained to sacrifice an additional unit

Option 4: Both 2 and 3

Question : Externalities refer to:

Option 1: Costs or benefits that spill over to third parties not directly involved in a transaction
  

Option 2: Costs or benefits incurred by the government
 

Option 3: Costs or benefits incurred by businesses only

Option 4: Costs or benefits incurred by consumers only

Question : Externalities refer to:

Option 1: Costs or benefits that spill over to third parties not directly involved in a transaction
  

Option 2: Costs or benefits incurred by the government
 

Option 3: Costs or benefits incurred by businesses only

Option 4: Costs or benefits incurred by consumers only