An Externality That Is Not Fully Paid by the Individual

question 189

Multiple Choice

An externality that is not fully paid by the individual using an automobile is

• A) insurance for the vehicle.
• B) gasoline for the vehicle.
• C) air pollution from the vehicle.
• D) operation of the vehicle.

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Definitions:

Lump Sum Payment

A one-time payment for the total amount due, rather than breaking it down into multiple payments over time.

Leisure

The time individuals spend away from work or productive activities, often used for relaxation or recreational activities.

Wage Rate

The fixed amount of money or compensation paid to an employee by an employer in exchange for work performed.

Labor Income

Earnings derived from work or employment, including wages, salaries, and other compensation.