Which of the following is an example of an activity that creates an external cost? i. A smoker emitting second-hand smoke.
Ii) Sulfur emitting from a smoke stack.
Iii) Throwing garbage on the roadside.
A) ii and iii
B) iii only
C) i and ii
D) i only
E) i, ii and iii

Question

Quizplus · Accepted Answer

All the given activities create external costs. Second-hand smoke from a smoker can harm others' health, sulfur emissions from smoke stacks can lead to acid rain and health issues, and throwing garbage on the roadside can harm the environment and public health, thus imposing costs on society that are not borne by the individuals committing these acts.

Which of the Following Is an Example of an Activity