Which of These Is an Example of an External Cost

question 119

Multiple Choice

Which of these is an example of an external cost?

• A) higher incidence of cancer in people living next to a toxic dump
• B) market price of oranges
• C) learning to shop more efficiently as a result of taking an economics course
• D) paying a higher price for oranges at a farmer's market

Understand price elasticity of demand and its implications for pricing strategies in competitive markets.

Analyze the impact of external costs and probability of events (e.g., seizure, fines) on market equilibrium and firm behavior.

Investigate the role of cost functions in determining the number of firms in an industry.

Understand the production process and budget constraints' effect on output levels in agricultural and livestock production.

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Definitions:

pH

A numeric scale used to specify the acidity or basicity of an aqueous solution, ranging from 0 to 14.

Strong Acids

Acids that completely dissociate into their ions in water, significantly increasing the concentration of hydrogen ions in a solution.

Reduced

Reduced typically refers to a chemical reaction in which atoms gain electrons, or in a broader sense, the diminishment in size, amount, or intensity of something.

Acid

Substances that release hydrogen ions (H+) when dissolved in water, characterized by their sour taste and the ability to turn litmus paper red.