An External Cost Is

question 90

Multiple Choice

An external cost is:

• A) a cost paid by the consumer or the producer.
• B) a cost paid by people other than the consumer or the producer trading in the market.
• C) the cost to everyone.
• D) the cost of reaching an agreement.

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Definitions:

Piece Rate Pay Systems

A compensation method where employees are paid a fixed rate for each unit they produce or task they complete, incentivizing productivity.

Direct Link

A straightforward connection or relationship between two elements, ensuring clear communication or interaction without intermediaries.

Piece Rate Plan

A compensation strategy where workers are paid a fixed rate for each unit of production completed, incentivizing efficiency and productivity.

Office Furniture Maker

A company or individual specialized in designing and manufacturing furniture for office environments.