Which of These Activities Will Most Likely Impose an External

question 93

Multiple Choice

Which of these activities will most likely impose an external cost?

• A)An athlete works out at a gym.
• B)A secretary smokes a cigarette in a crowded break room.
• C)A young mother pushes her baby in a stroller.
• D)A construction worker eats a hotdog during his lunch break.

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Definitions:

Dynamic Inefficiencies

Inefficiencies in an economy or market that arise over time, often due to poor investment decisions or policies that hinder adaptation to new technologies or market conditions.

Pollution

The contamination of the environment by substances that are harmful to living organisms and natural resources.

Trucking Industry

An economic sector focused on the transportation of goods and materials over land, predominantly using trucks and professional drivers.

Average Social Cost

The total cost to society of producing an additional unit of a good or service, including both private costs and any external costs.