An Example of an Externality Is the Impact of

question 46

Multiple Choice

An example of an externality is the impact of

• A)bad weather on the income of farmers.
• B)the personal income tax on a person's ability to purchase goods and services.
• C)pollution from a factory on the health of people in the vicinity of the factory.
• D)increases in health care costs on the health of individuals in society.

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Definitions:

Sedimentation

The process by which particles settle out of a fluid, leading to the accumulation of solid material on the floor of a water body or other surface.

Hot Springs

Natural pools of water that are heated geothermally from the Earth's interior, often found in volcanic areas.

Geothermal Power

The generation of electricity using the heat from within the Earth's crust, often harnessed at volcanic or tectonic plate boundaries.

Earthquakes

Vibrations of the Earth's surface caused by the sudden release of energy in the Earth's crust.