The number of kilometres a household drives its vehicles each year is determined by its ________ of driving.

Question

Quizplus · Accepted Answer

The number of kilometres a household drives is determined by its private cost of driving, which includes the cost of fuel, maintenance, insurance, and other out-of-pocket expenses. The opportunity cost refers to the cost of foregone alternatives, while social cost refers to the cost imposed on society as a whole, including externalities like pollution and congestion. External costs are costs that are not borne by the person or entity responsible for them but by others, such as the community or the environment.

The Number of Kilometres a Household Drives Its Vehicles Each