Air Pollution Is an External Cost Because It

question 304

Multiple Choice

Air pollution is an external cost because it

• A) is a pollution of the external environment.
• B) is a cost not borne by the producer of the good.
• C) benefits no one.
• D) is not associated with resource use.
• E) is created only when production occurs.

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Definitions:

Contract

A legally binding agreement between two or more parties, outlining obligations and rights concerning products, services, or other matters.

Material Alteration

A significant change to a document that affects the rights and obligations of the parties involved.

Cisg

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform framework for international commerce.

Merchant

An individual or company engaged in the buying and selling of goods, especially on a large scale or with international trade.