An External Cost

question 20

Multiple Choice

An external cost:

• A) causes markets to allocate resources efficiently.
• B) affects producers but not consumers.
• C) is a cost paid by people other than the producer or consumer trading in the market.
• D) leads to economic efficiency only when private costs are greater than external costs.

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Definitions:

Nonoverlapping Distributions

Statistical distributions in which two or more groups do not share common outcomes or values, indicating distinct differences between the groups.

Small To Moderate

This term refers to a range of intensity or magnitude that is higher than minimal but not extensive or large.

Safer Drivers

Individuals who engage in driving behaviors that minimize risks and contribute to the prevention of accidents.

Talk More

The act of increasing verbal communication or dialogue, often advised to enhance understanding or relationships among individuals.