Asked by Karina Garcia on May 01, 2024
Verified
Which of the following is an external cost of an automobile?
A) maintenance and repair
B) gasoline
C) pollution and health
D) raw materials and labour
External Cost
A cost that a business or economic activity imposes on third parties who are not part of the transaction, such as pollution.
Pollution
The introduction of contaminants into the natural environment that cause adverse changes, affecting air, water, and soil quality.
Maintenance and Repair
Activities aimed at keeping machinery, equipment, or systems in working order and restoring them to proper condition when they malfunction or deteriorate.
- Gain an understanding of the costs borne externally and internally by economic activities and evaluate their influence on sustainability and the formulation of policies.
Verified Answer
Learning Objectives
- Gain an understanding of the costs borne externally and internally by economic activities and evaluate their influence on sustainability and the formulation of policies.
Related questions
Why Do Economists Plot a Curve of Pollution Cleanup Costs ...
What Is Caused by Internalizing External Costs ...
Which of the Following Is an Internal Cost of Driving ...
When the Production or Consumption of Some Good or Service ...
Smog Corporation and Grimy Corporation Emit Pollution in Their Production ...