Which of the Following Is Not an External Cost of Driving

question 75

Multiple Choice

Which of the following is not an external cost of driving a domestic car?

• A) air pollution and litter
• B) cost of manufacture
• C) highway accidents
• D) health costs
• E) hazardous wastes produced by car exhaust

---

Definitions:

Inputs

Factors including workforce, materials, and funds employed in the process of creating products or offering services.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption.

Constant Returns To Scale

A situation in production where increasing the amount of inputs results in a proportionate increase in the output.

Poorer Grows Faster

An observation in economics that poorer economies tend to grow at a faster rate than richer economies due to the catch-up effect.