A Car Buyer and Others in Society, Pay Hidden Costs

question 103

Multiple Choice

A car buyer and others in society, pay hidden costs of car ownership in the form of all of the following, except

• A)poorer health
• B)higher costs of insurance and health care
• C)higher taxes for pollution control
• D)housing construction
• E)land used for highways and parking

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Definitions:

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods and services.

Labor

Utilization of human mental and physical effort in the production process of goods and services.

Capital

Wealth in the form of money or assets, used or available for use in the production of more wealth.

Accounting Profit

The total revenue of a business minus its explicit costs; does not include opportunity costs.