If a Person Does Not Pay All Costs Associated with a Particular

question 156

Multiple Choice

If a person does not pay all costs associated with a particular resource-using activity, then

• A) the external costs of the activity are greater than the private costs of the activity.
• B) the social costs of the activity are greater than the private costs of the activity.
• C) the external costs of the activity are greater than the internal costs of the activity.
• D) the full costs of the activity are the sum of private costs plus internal costs.

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Definitions:

Historical Experience

The knowledge and insights gained from past events and activities, which can inform future decisions and strategies.

Time Study

A method used to determine the time required for an employee to complete a given job.

Sample Size

Denotes the number of subjects or units chosen from a population for the purpose of statistical analysis.

Accuracy

The degree to which the result of a measurement, calculation, or specification conforms to the correct value or a standard.