Which of the Following Activities, If Any, Represents an External

question 252

Multiple Choice

Which of the following activities, if any, represents an external cost?

• A)​The benefits that accrue to society when an individual receives a college education.
• B)​The increase in property values of vacant lots in an area near where a new amusement park is constructed.
• C)​The pollination of apple trees that occurs when a beekeeper locates next door to an apple orchard.
• D)​None of the above

Describe conditions for allocative efficiency in markets.

Recognize the efficiency outcomes of competitive markets.

Understand public goods and their characteristics.

Identify the role of government in market economies.

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Definitions:

Antisocial Personality Disorder

A mental condition in which a person consistently shows no regard for right and wrong and ignores the feelings of others.

Psychopath

A term often used to describe an individual with antisocial personality disorder, characterized by a lack of empathy, manipulative behavior, and sometimes violent tendencies.

Unnecessarily Lengthy

Describing something that is longer than required or needed without justifiable reasons.

Phobia

An intense, irrational fear of specific situations, objects, animals, or activities that poses little or no actual danger.