An Example of an External Cost of Alcohol Is

question 25

Multiple Choice

An example of an external cost of alcohol is

• A)traffic fatalities attributable to drunk driving.
• B)the cost to alcoholics of going to rehabilitation clinics.
• C)the cost of producing whiskey.
• D)the cost to bars of hiring janitors to clean up after their customers.

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Definitions:

Credit Line

The maximum amount that a person can owe on a credit card at one time.

Layaway Plan

A purchasing agreement that allows a buyer to pay for goods in installments and receive the goods upon full payment.

APR

APR, or Annual Percentage Rate, represents the yearly interest rate charged on borrowed money, encompassing both the nominal rate and additional costs associated with the loan.

APR

Annual Percentage Rate, which measures the cost of credit, including interest and any other charges, expressed as a yearly interest rate.