Which of These Is an Example of an External Cost

question 47

Multiple Choice

Which of these is an example of an external cost?

• A)an increase in the value of land you own when a nearby development is completed.
• B)the costs paid by a company to build an automated factory.
• C)decreased property values in a neighbourhood where several houses are burglarized.
• D)the higher price you pay when you buy a heavily advertised product.

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Definitions:

Republicans

A political party in the United States that traditionally supports conservative policies, economic liberalism, and federalism.

Ross Perot

An American business magnate and politician best known for his third-party presidential runs in 1992 and 1996, focusing on fiscal responsibility and political reform.

Bipartisan System

A political system in which two major parties dominate the government and political landscape at any given time.

Dick Cheney

A prominent American politician and businessman who served as the 46th Vice President of the United States under President George W. Bush.