An External Cost, Such as the Cost Generated by Pollution

question 49

Multiple Choice

An external cost, such as the cost generated by pollution, is

• A) a cost paid by consumers of the product.
• B) a cost paid by producers of the product.
• C) a cost paid by a third party or by society at large.
• D) not a true opportunity cost of production.

---

Definitions:

Flow Time

The psychological state of being fully immersed and focused on an activity, where time seems to pass unnoticed.

Leisure Time

Free time spent away from work, duties, or responsibilities, where one can relax or engage in chosen activities for enjoyment.

Situational Self-Image

The perception a person has of themselves in different situations, which can change depending on the context or environment.

Consumer Contamination

The notion that a product loses value in the eyes of a consumer if it is perceived as having been touched or used by another person.