External Costs Are Those Costs

question 66

Multiple Choice

External costs are those costs:

• A) that fall directly on an economic decision maker.
• B) that fall indirectly on an economic decision maker.
• C) that are imposed without compensation on someone other than the person who caused them.
• D) that are both social costs and private costs.

Differentiate among various research methods such as case studies, naturalistic observation, surveys, and correlational research.

Appreciate the importance of representative sampling in survey research.

Recognize the limitations of drawing causal inferences from correlational data.

Identify factors affecting the validity and reliability of research findings.

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Definitions:

Sales Price

The amount of money a buyer pays to purchase a good or service from a seller.

Economic Order Quantity

The ideal order size that minimizes the total costs associated with ordering and holding inventory.

Carrying Costs

Expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs.

Inventory Costs

Expenses associated with the purchase and maintenance of goods for sale, including storage, managing, and insurance costs.