Unintended Costs That Are Imposed in Third Parties as a Result

question 80

Multiple Choice

Unintended costs that are imposed in third parties as a result of an economic activity are called:

• A) marginal costs.
• B) direct costs.
• C) negative externalities.
• D) positive externalities.
• E) positive costs.

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Definitions:

Consumer Price Index

An index measuring the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Competitive

A market situation wherein there are many sellers and buyers, leading to prices that reflect supply and demand.

Geographic Extent

The physical or virtual area over which a study, policy, or market operates, often influencing its scope and impact.

Real Price

The price of a good or service adjusted for inflation, reflecting its purchasing power relative to a specific base year.