Pollution Is Considered an External Cost Because;

question 3

Multiple Choice

Pollution is considered an external cost because;

• A)it has a harmful effect borne only by people who purchased the product that caused it.
• B)its cost to the environment is not reflected in the price of the product that produces it.
• C)it has a significant impact on the consumer's decision to buy the product that causes it.
• D)it is a hidden cost that would increase demand if the consumer were aware of it.

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Definitions:

Federal Food, Drug, and Cosmetic Act

A set of laws passed by Congress giving authority to the FDA to oversee the safety of food, drugs, and cosmetics.

U.S. Food and Drug Administration

A federal agency responsible for protecting and promoting public health by controlling and supervising the safety of food, tobacco products, dietary supplements, prescription and over-the-counter pharmaceutical drugs, vaccines, biopharmaceuticals, medical devices, and veterinary products.

Enforcement Agency

A governmental agency that has the authority to enforce laws, regulations, or rules.

Truth-in-Lending Act

Legislation at the federal level intended to facilitate the informed use of credit by consumers by mandating the disclosure of its terms and costs.