Which of the following activities represents an external cost?
A) The reduction in the incidence of chicken pox after children are inoculated against the disease
B) The damage to a person's health from secondhand smoke
C) The increase in local property values after a park is built in a city
D) The price paid for the prime rib that is consumed at a local restaurant
E) The monthly rent paid by a manufacturer on a factory building
Correct Answer:
Verified
Q23: Private costs are borne by:
A)the government.
B)the producer
Q24: A tax on firms that emit pollutants
Q25: If a positive externality results from higher
Q26: An example of a positive externality is:
A)congestion
Q27: The social cost of production is:
A)the sum
Q29: An example of a negative externality is:
A)the
Q30: The presence of negative externalities in the
Q31: The motivation for an individual citizen to
Q32: If negative externalities are generated in the
Q33: A corrective tax on polluting firms equal
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