Which Statement Illustrates the Concept of External Cost

question 143

Multiple Choice

Which statement illustrates the concept of external cost?

• A) Margaret purchases all her food and clothing in the big city outside her residence.
• B) A small business owner frequently buys raw materials by using her bank's line of credit.
• C) Raymond cannot open his windows at times because he lives downwind from a mushroom farm.
• D) Felicia, an economics major, asks the most insightful questions in class.

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Definitions:

Westerners

People originating from or living in the Western world, often used to describe cultures and societies based in Europe, North America, and other regions influenced by Western norms and values.

Angry Feelings

Emotional responses characterized by annoyance or displeasure, which may arise from a range of personal or external triggers.

Race

A social construct used to categorize humans into large and distinct populations or groups by heritable physical, social, and cultural traits.

True Story

Often refers to an account or narrative based on real events and facts, as opposed to fiction.