Which of the Following Illustrates the Concept of External Cost

question 108

Multiple Choice

Which of the following illustrates the concept of external cost?

• A)Bad weather reduces the size of the wheat crop.
• B)A reduction in the size of the wheat crop causes income of wheat farmers to fall.
• C)Smoking harms the health of the smoker.
• D)Smoking harms the health of nearby nonsmokers.
• E)Public health services reduce the transmission of disease.

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Definitions:

Epinephrine

A hormone and neurotransmitter also known as adrenaline, involved in the body's fight-or-flight response.

Vasopressin

A hormone produced by the hypothalamus and stored in the pituitary gland that regulates water balance in the body by reducing urine production; also known as antidiuretic hormone.

Prolactin

A hormone produced by the anterior pituitary gland that stimulates milk production after childbirth.

Positron Emission Tomography

A nuclear medicine functional imaging technique used to observe metabolic processes in the body.