An External Cost Is a Cost Paid By

question 33

Multiple Choice

An external cost is a cost paid by:

• A) the consumers trading in the market.
• B) the producers trading in the market.
• C) the government regulating the market.
• D) people other than the consumer and the producer trading in the market.

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Definitions:

Contract Parties

The entities involved in a contractual agreement, typically including at least one offeror and one offeree.

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to engage in agreements, potentially leading to market failure.

Cafeteria Plan

A type of employee benefit plan that allows workers to choose from a variety of pre-tax benefit options to suit their personal needs.

Fringe Benefit

Additional compensation provided to employees beyond their normal salaries or wages, such as health insurance, pensions, or paid vacations.