Which of the Following Situations Involves an External Cost

question 293

Multiple Choice

Which of the following situations involves an external cost?

• A) Winston doesn't understand his economics text-which was not written by Professor Chiang-and he feels he has wasted his money.
• B) Alma lives next to a freeway and the noise wakes her up every morning,against her wishes,at six o'clock.
• C) Pablo can't decide whether to go to Hong Kong for lunch or Paris for brunch,and he doesn't think it is fair that he can't do both.
• D) Johnston thinks that the price of gasoline is too high.

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Definitions:

Testify

To give a formal statement of fact or evidence under oath in a court of law.

Credible

Being trustworthy or believable, especially in the context of sources of information or evidence.

Unbiased

Showing no prejudice or favoritism, maintaining impartiality.

Recorded Interview

An interview whose contents have been documented through audio or video recording.