Costs imposed on future users of a resource are called

a. Transactions costs
b. Social costs
c. Private costs
d. Depletion costs
e. User costs

Ans: e. User costs

Economics

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An advantage to American banks from operating foreign branches is that Eurodollar deposits in offshore branches are

A) not subject to reserve requirements. B) insured by the FDIC. C) subject to extensive regulatory supervision. D) all demand deposits that pay no interest.

Economics

When the government reduces my income tax by $0.30 for every $1.00 that I contribute to a charity, the government is effectively

a. alleviating the negative externalities that are associated with charitable giving. b. imposing a negative externality on those who do not pay income taxes. c. encouraging a private solution to a positive-externality problem. d. encouraging a private solution to a negative-externality problem.

Economics