What Does the Phrase "Internalizing an External Cost" Mean

question 253

Multiple Choice

What does the phrase "internalizing an external cost" mean?

• A)limiting the extent to which domestic firms can outsource production
• B)prohibiting economic activities that create externalities
• C)forcing producers to factor into their production costs the cost of the externalities created in the production of their output
• D)finding a way to address cross-border pollution

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Definitions:

Divergent Thinking

An approach to problem-solving that involves generating multiple solutions or ideas.

Verbal Abilities

The capacity to use language effectively and understand its nuances, including vocabulary, grammar, and expression.

Gardner's Multiple Intelligences

A theory proposed by Howard Gardner, suggesting that individuals possess differing kinds of intelligences, including verbal-linguistic, logical-mathematical, spatial, musical, bodily-kinesthetic, interpersonal, intrapersonal, and naturalistic.

Bodily-Kinesthetic

A type of intelligence that involves the capacity to manipulate objects and use physical skills effectively, as conceptualized by Howard Gardner's theory of multiple intelligences.