What Would Be an Example of Externalizing Costs

question 29

Multiple Choice

What would be an example of externalizing costs?

• A)All of these answers are examples of externalizing costs.
• B)water quality decline due to nonpoint source pollution
• C)releasing particulate matter or pollution into the atmosphere
• D)increased risk of flooding by changing wetlands into development
• E)loss of stream habitat and disruption of food chains due to overburden from strip mining dumped in headwater streams

---

Definitions:

Interest Rates

The percentage charged on the total amount of borrowed money, reflecting the cost of debt for the borrower and the return on investment for the lender.

Unintended Inventory Changes

Variations in stock levels that occur when actual sales differ from anticipated sales, not resulting from planned actions by businesses.

Keynesian Models

Economic theories that emphasize the total spending in the economy and its effects on output and inflation, developed by John Maynard Keynes.

Planned Investment

Expenditures that businesses intend to make in the future for new capital assets, such as buildings and machinery, to increase production capabilities.