External Costs Occur Because

question 166

Multiple Choice

External costs occur because:

• A) a good's costs are not fully reflected by its equilibrium price.
• B) a good's costs are fully reflected by its equilibrium price.
• C) the demand price reflects both private benefits to buyers and external benefits to nonbuyers.
• D) the market price reflects both private costs to sellers and external costs to nonsellers.

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Definitions:

Rename

The process of changing the name of a file, variable, or other item in a computer system or program.

Field Size

The maximum amount of data that can be stored in a database field, typically defined in number of characters or bytes.

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The title or label at the top of a column in tables or spreadsheets that describes the kind of data contained in the column.

Decimal Places

The number of digits to the right of the decimal point in a number; important in precision for calculations and representations.