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Question
question 10
what is thesocial rate of return?
the benefits received exclusively by private individuals.
the rate of external costs caused by market failures.
the estimated returns going primarily to society, like providing free education.
the returns captured by firms selling nonrivalrous goods.
the cost of producing goods that exclude free riders.
The social rate of return focuses on the overall benefits to society. Private - individual - exclusive benefits (first option) are about private return. External costs (second option) are not returns. Returns to firms (fourth option) are private - sector - related. The cost of excluding free - riders (fifth option) is a cost, not a return. Free education is an example of a social - benefit - generating investment, so the social rate of return is about estimated returns to society.
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The estimated returns going primarily to society, like providing free education.