What Does the Phrase "Internalizing an External Cost" Mean

question 253

Multiple Choice

What does the phrase "internalizing an external cost" mean?

• A)limiting the extent to which domestic firms can outsource production
• B)prohibiting economic activities that create externalities
• C)forcing producers to factor into their production costs the cost of the externalities created in the production of their output
• D)finding a way to address cross-border pollution

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Definitions:

Liability

Being under a legal obligation to answer for something, especially with respect to owing money or fulfilling legal requirements.

Mortgage Interest Rates

The cost of borrowing money expressed as a percentage of the total amount of the loan, applied to mortgages.

NSF Charges

Non-Sufficient Funds (NSF) charges are fees charged when a transaction is attempted on an account without adequate funds to cover it.

Legal Rights

Refers to the entitlements granted by legal systems or societal norms to individuals or entities, encompassing freedoms, privileges, and protections under law.