Which of the Following Is an Example of an External

question 147

Multiple Choice

Which of the following is an example of an external benefit?

• A) More people start to ride the bus because they become more public‐spirited and, as a result, air pollution is reduced.
• B) Firms are able to reduce their costs of production by using a more efficient technology.
• C) The federal government spends a million dollars on improving national parks.
• D) A firm has just gotten permission to open a landfill on property that is adjacent to your home.

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Definitions:

Hostile

Showing or feeling opposition or dislike; unfriendly.

Psychotherapy

A treatment method involving talking and interaction between a therapist and patient to address and alleviate mental health issues.

Consumer Reports

Non-profit organization that provides reviews and comparisons of consumer products and services based on testing and consumer feedback.

Drug Therapies

Treatment of disease or condition through the administration of drugs or medications.