A measure comparing the prices of consumer goods and services that a household typically purchases to the prices of those goods and services purchased in a base year is:

Which of the following statements is TRUE about the relationship among external, internal and social costs?

A) Social costs will always be higher than external costs. B) Social costs will always be higher than internal costs. C) Internal costs will always be higher than external costs. D) Internal costs will never equal external costs.

Individuals, firms, and nations should specialize in those activities which have the highest marginal cost

a. True b. False Indicate whether the statement is true or false