O-LevelEconomicsThe allocation of resources2281/12 · Oct/Nov 2016 · Q71 Mark
What indicates the existence of external costs in an economy?
AAn international trade deficit has caused the country to be in debt.
BNational companies have borrowed from foreign investors.
CPrivate costs of production are less than social costs.
DPrivate costs of production are more than social benefits.
✓ Correct answer
C: Private costs of production are less than social costs.
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