Internalizing External Costs

question 41

Multiple Choice

Internalizing external costs

• A)involves making the market price approach the true cost of an economic good.
• B)fails to include the cost of pollution.
• C)omits the costs of taxes.
• D)increases the chance for environmental degradation.
• E)lowers the cost of goods and services.

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Definitions:

Replacement Level

A term used in demography indicating the number of children each woman needs to have to ensure the population size remains constant, typically calculated as slightly over two children per woman.

Fertility Levels

The mean number of offspring a woman has during her life in a certain group of people.

Replacement Level Fertility

The fertility rate at which each new generation precisely replaces itself, without increasing or decreasing the population size.

Stability Level

The degree to which a system is resistant to, or able to absorb, changes and disturbances, maintaining its original state.