If Pollutants from Smoke Stacks in a City Such as Newark

question 145

Multiple Choice

If pollutants from smoke stacks in a city such as Newark causes people to paint their homes and cars more frequently, this implies

• A) external benefits to the home and car owners.
• B) external costs on home and car owners.
• C) internal cost to home and car owners.
• D) none of the above.

---

Definitions:

Scarcity

The fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.

Opportunity Cost

Incurring a cost by overlooking the next most advantageous option when making choices.

Investment

The allocation of resources, usually money, into something with the expectation of generating income or profit in the future.

Capital

Assets used in the production of goods and services, such as machinery, buildings, or tools.