Which of These Consumption Activities Will Most Likely Impose an External

question 75

Multiple Choice

Which of these consumption activities will most likely impose an external cost?

• A)An executive plays a vigorous game of golf.
• B)A student in a dorm plays her CDs at 120 decibels late at night.
• C)A young mother exercises to an aerobics video.
• D)A construction worker eats a sandwich during his lunch break.

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Definitions:

M-Pesa

A mobile phone-based money transfer service, payments, and micro-financing service, launched in 2007 by Vodafone for Safaricom and Vodacom.

Phone-Based Money Transfer

A service allowing individuals to send and receive money using their mobile phones, often without the need for a traditional bank account.

Purchase

The act of buying goods or services in exchange for money or other agreed-upon compensation.

Business Incubator

An organization that supports early-stage companies through mentorship, resources, and sometimes financial investment.