Asked by Macey French on May 16, 2024
Verified
Which of the following is an internal cost of driving a domestic car?
A) cost of manufacture
B) highway accidents
C) pollution
D) destruction of land
Internal Cost
Expenses that are directly attributable to a specific project or activity, including materials, labor, and direct overhead.
Domestic Car
A vehicle manufactured within a country, typically marketed and sold to the residents of that country.
Manufacture
The process of producing goods on a large scale using labor, machines, tools, and chemical or biological processing.
- Absorb the concept of external and internal expenses linked to economic activities and assess their impact on sustainability and the shaping of policy.
Verified Answer
KÞ
Karen ÞorvaldsdóttirMay 17, 2024
Final Answer :
A
Explanation :
The cost of manufacture is an internal cost of driving a domestic car, as it is borne by the manufacturer and ultimately passed onto the consumer in the form of the car's price. Highway accidents, pollution, and destruction of land are external costs that may be associated with driving a car, but they are not directly internal costs.
Learning Objectives
- Absorb the concept of external and internal expenses linked to economic activities and assess their impact on sustainability and the shaping of policy.