Which of the Following Activities Represents an External Cost

question 100

Multiple Choice

Which of the following activities represents an external cost?

• A)The reduction in the incidence of chicken pox after children are inoculated against the disease
• B)The damage to a person's health from secondhand smoke
• C)The increase in local property values after a park is built in a city
• D)The price paid for the prime rib that is consumed at a local restaurant
• E)The monthly rent paid by a manufacturer on a factory building

---

Definitions:

Health Care Spending

Health care spending encompasses all expenditures related to health care services, including prevention, treatment, rehabilitation, and health insurance, measured over a specific period.

Percentage

A way of expressing a number as a fraction of 100, symbolized by the percent sign (%).

Health Savings Accounts

Tax-advantaged accounts available in the United States to individuals enrolled in high-deductible health plans, used to save for medical expenses.

Origins

The point or place where something begins, arises, or is derived.