Water Pollution Is Not an Example of an External Cost

question 47

True/False

Water pollution is not an example of an external cost.

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Definitions:

Utility Function

A representation in economics of how a consumer ranks different goods or services, based on the level of satisfaction they provide.

Consumption

Consumption involves the use of goods and services by households, constituting one of the primary components of economic activity and a key indicator of economic health.

Income

The monetary payment received for work or through investments, pensions, or subsidies, which is used for consumption and saving.

Utility Functions

Mathematical models used to represent an individual's preference ordering over a set of alternatives, based on the level of satisfaction or utility.