Evidence of External Costs in the Production of a Product

question 16

Multiple Choice

Evidence of external costs in the production of a product is present if

• A) the price of the product is higher than it should be.
• B) the production cost increases because of an increase in the minimum wage.
• C) non-buyers and/or non-producers of the product experience a loss for which they are not compensated.
• D) buyers refuse to purchase the product.
• E) producers pay all of the costs of producing the good or service.

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Definitions:

Medullary Cavity

The central cavity of bone shafts where red and/or yellow marrow (blood cell production or fat storage, respectively) is stored; pivotal in the hemopoietic process and energy storage.

Articular Cartilage

A smooth, white tissue that covers the ends of bones where they come together to form joints, enabling low-friction movement.

Long Bones

Bones that are longer than they are wide, found in the arms, legs, hands, and feet, playing a major role in movement.

Periosteum

Surrounding the bones, apart from the joint surfaces, is a compact layer of vascular connective tissue.