When Both Internal and External Costs for Using a Scarce

question 221

Multiple Choice

When both internal and external costs for using a scarce resource are included, then there is

• A) an increase in the production of the good.
• B) a negative externality.
• C) an increase in the price of the good.
• D) a positive externality.

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Definitions:

Implement Policies

The process of putting into action or enforcing strategies, laws, or guidelines.

Political Party

An organized group of people with similar political aims and opinions, that seeks to influence public policy by getting its candidates elected to public office.

Win Elections

The aim and process political candidates and parties undergo to gain office by receiving a majority or plurality of votes in an election.

Official Power

The legal authority vested in a person holding a governmental office or position to make decisions, enact policies, or command resources.