All of the Following Are Examples of External Cost EXCEPT

question 136

Multiple Choice

All of the following are examples of external cost EXCEPT:

• A) smoke nuisance of a factory.
• B) zoning restrictions on your property.
• C) land defilement from strip mining.
• D) weeds on your next-door neighbor's lawn.

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Definitions:

Personal Casualty Loss

Financial loss resulting from the damage, destruction, or loss of an individual’s property from sudden, unexpected, or unusual events.

Deduction

An amount that can be subtracted from gross income to reduce the total taxable income, leading to lower tax liability.

Federally Declared Disaster Area

An area officially designated by the Federal Emergency Management Agency (FEMA) where significant damage has occurred due to natural or man-made disasters, making it eligible for federal aid.

Casualty Loss

A loss resulting from a sudden, unexpected, or unusual event such as a natural disaster, theft, or accident.