Which of the Following Is an Example of an External

question 270

Multiple Choice

Which of the following is an example of an external cost?

• A) The cost of labor to a firm
• B) The pollution caused by automobile exhaust
• C) The cost of tires for your car
• D) The opportunity cost of getting a college education

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Definitions:

Administrative

Pertaining to the execution of laws and the management of public affairs; often related to the functions and activities of government agencies.

Judicial Order

A directive issued by a court or a judge requiring a person or entity to do or refrain from doing something.

Illegal

Activities or actions that are forbidden by law and subject to criminal penalties or other sanctions.

Consumer Law

Statutes, agency rules, and judicial decisions protecting consumers of goods and services.