An External Cost

question 20

Multiple Choice

An external cost:

• A) causes markets to allocate resources efficiently.
• B) affects producers but not consumers.
• C) is a cost paid by people other than the producer or consumer trading in the market.
• D) leads to economic efficiency only when private costs are greater than external costs.

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Definitions:

Transfer RNA

A type of RNA molecule that helps decode a messenger RNA (mRNA) sequence into a protein during protein synthesis.

Messenger RNA

A type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.

Primary mRNA Transcript

The initial, unmodified RNA transcript produced by transcription from DNA.

DNA Replication

The biological process of producing two identical replicas from one original DNA molecule, critical during cell division.