Figure 5-4 -Refer to Figure 5-4. the Figure Illustrates an Industry That

question 171

Multiple Choice

Figure 5-4
-Refer to Figure 5-4. The figure illustrates an industry that generates

• A) external benefits.
• B) external costs.
• C) no externalities.
• D) economies of scale.

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Definitions:

Productive Economic Resource

Assets or inputs used in the production of goods and services, including land, labor, capital, and entrepreneurship.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Use Of Money

The various purposes for which money is used in an economy, including spending, saving, and investing.

Interest Rates

The percentage charged on borrowed money or paid on savings, essentially the cost of borrowing or the reward for saving.