Which statement illustrates the concept of external cost?
A) Margaret purchases all her food and clothing in the big city outside her residence.
B) A small business owner frequently buys raw materials by using her bank's line of credit.
C) Raymond cannot open his windows at times because he lives downwind from a mushroom farm.
D) Felicia, an economics major, asks the most insightful questions in class.
Correct Answer:
Verified
Q13: Which equation is TRUE?
A) private cost +
Q14: Which is an example of an external
Q15: An external cost:
A) causes markets to allocate
Q16: Antibiotics may be _ since people consider
Q17: A chemical bathroom cleaner has an ingredient
Q19: The social cost is:
A) a cost paid
Q20: If the social cost of an activity
Q21: When the government intervenes in markets with
Q22: Which statement is correct under a market
Q23: Many remedies to resolving externalities involve "internalizing
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