If a Coal-Powered Electrical Generator Discharges Smoke into the Air

question 8

Multiple Choice

If a coal-powered electrical generator discharges smoke into the air and causes uncompensated costs and discomfort to residents of a town, this situation is an example of a(n) :

• A) quasi-public good.
• B) external cost.
• C) external benefit.
• D) specific tax.

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Definitions:

Product or Service

The final output offered by a company to consumers, which can either be a tangible item (product) or an activity benefiting the customer (service).

Raw Materials Inventory

Goods or components that a company uses in the manufacture of finished products.

Completed Goods

Final products that have undergone the manufacturing process and are ready to be sold or distributed.

Cost

The total expense incurred in producing a product or providing a service, including materials, labor, and overhead charges.