Multiple Choice
Which of the following is most likely to cause a depreciation in a country's currency?
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7. Externalities
Externalities: Social Benefits and Social Costs
Multiple Choice
Which of the following is most likely to be an outcome of the digital divide in terms of social costs and benefits?
A
Universal access to digital technologies, resulting in equal social benefits for all
B
Lower marginal social cost of internet provision for disadvantaged communities
C
Reduced access to educational and employment opportunities for certain groups, leading to increased social costs
D
Decreased negative externalities associated with technology use
Verified step by step guidance1
Step 1: Understand the concept of the digital divide, which refers to the gap between individuals or groups who have access to modern digital technologies and those who do not.
Step 2: Recognize that social costs and benefits relate to the overall impact on society, including both positive effects (benefits) and negative effects (costs) that arise from economic activities or policies.
Step 3: Analyze each option by considering how the digital divide affects social costs and benefits. For example, universal access would reduce the divide and equalize benefits, while reduced access would increase social costs for disadvantaged groups.
Step 4: Identify that reduced access to digital technologies limits educational and employment opportunities for certain groups, which can increase social costs such as lower productivity, higher unemployment, and greater inequality.
Step 5: Conclude that the most likely outcome of the digital divide is increased social costs due to reduced access to opportunities for disadvantaged groups, rather than universal access or decreased externalities.
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