What Does the Phrase "Internalizing an External Cost" Mean

question 253

Multiple Choice

What does the phrase "internalizing an external cost" mean?

• A)limiting the extent to which domestic firms can outsource production
• B)prohibiting economic activities that create externalities
• C)forcing producers to factor into their production costs the cost of the externalities created in the production of their output
• D)finding a way to address cross-border pollution

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Definitions:

Hispanic

A term used to describe people, cultures, or countries related to the Spanish language, culture, or people.

Noninterference

A principle or policy of not becoming involved in the affairs of others or avoiding influencing their outcomes.

African American

A term referring to Americans of African descent with roots in any of the black racial groups of Africa.

First Nations

Term primarily used in Canada to describe indigenous peoples who are not Inuit or Métis, emphasizing their status as the original inhabitants of the land.