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:

Population Mean

The average value of a characteristic or measurement across the entire population targeted in a study.

Population Standard Deviation

A measure of the dispersion or spread of a set of data points in a population, quantifying how much the data diverges from the mean of the population.

Sample Size

The number of observations or replicates used in a statistical sample.

Confidence Estimate

A range or interval within which an unknown population parameter is expected to lie, calculated to a specific confidence level.