An Example of an Externality Is the Impact of

question 46

Multiple Choice

An example of an externality is the impact of

• A)bad weather on the income of farmers.
• B)the personal income tax on a person's ability to purchase goods and services.
• C)pollution from a factory on the health of people in the vicinity of the factory.
• D)increases in health care costs on the health of individuals in society.

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Definitions:

Enzyme

Biological catalysts that speed up chemical reactions in the body without being consumed in the process.

Thermodynamics

The branch of physics that deals with the relationships between heat and other forms of energy, and how these affect matter.

Usable Energy

energy that is available for doing work in a system, after accounting for energy lost as heat or in other unusable forms.

Transformed

Altered in form, appearance, or structure, especially significantly so.