What Does the Phrase 'Internalising an External Cost' Mean

question 12

Multiple Choice

What does the phrase 'internalising an external cost' mean?

• A)Limiting the extent to which domestic firms can outsource production
• B)Prohibiting economic activities that create externalities
• C)Forcing producers to factor into their production costs the cost of the externalities created in the production of their output
• D)Finding a way to address cross-border pollution

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Definitions:

Love And Friendship

Deep, affectionate connections between people, where love involves strong emotions and attachment, and friendship is based on mutual respect, appreciation, and shared interests.

Energizing Force

A motivating factor or influence that drives actions, changes, or developments within individuals or organizations.

Satisfy A Need

Meeting the requirements or desires of a consumer through the provision of products, services, or information.

Motivation

The internal or external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.