In the Case of an External Cost

question 89

Multiple Choice

In the case of an external cost:

• A) the agent responsible for the cost must pay for the cost.
• B) the government will always pay the cost.
• C) the agent responsible for the external cost will produce too much of the good or service involved.
• D) there is generally an offsetting social benefit.

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Definitions:

Time Period

A length of time during which a sequence of events occurs, often used to identify historical or geological eras.

First Organisms

The first organisms refer to the earliest forms of life on Earth, which are believed to be simple, single-celled organisms that appeared billions of years ago.

Trilobites

Extinct marine arthropods with a hard exoskeleton, which lived between the Cambrian and Permian periods, serving as important index fossils.

K-P Boundary

The K-Pg (Cretaceous-Paleogene) Boundary marks the mass extinction event about 66 million years ago that led to the extinction of the dinosaurs and many other species.