Which of the following is an example of an external cost?
A) the cost of labor to a firm
B) the pollution caused by automobile exhaust
C) the cost of tires for your car
D) the opportunity cost of getting a college education
Answer: B
Economics
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When the goods of competing companies are identical, consumers have no reason to prefer one product over the other so the demand curve for each manufacturer will be perfectly elastic
a. True b. False Indicate whether the statement is true or false
Economics
Durable and nondurable goods and services lumped together in the expenditure approach to measuring GDP are called:
A. Personal consumption. B. Gross private domestic investment. C. Government spending. D. Inventory.
Economics