An External Cost Is Imposed When an Action Imposes Costs

question 29

True/False

An external cost is imposed when an action imposes costs on others outside the context of market exchange.

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Definitions:

Budgeted Receipts

Estimated amounts of money expected to be received during a specified budget period.

Wholesaler

An intermediary in the distribution process that buys products in bulk and resells them to retailers or other businesses.

Industrial Goods

Products used in the production of other goods or services, not intended for direct consumption by consumers.

Merchandise Inventory

Goods held for sale to customers in the ordinary course of business.