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) i only
B) i and ii
C) iii only
D) ii and iii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

All three activities (i. a smoker emitting second-hand smoke, ii. sulfur emitting from a smoke stack, iii. throwing garbage on the roadside) create external costs. These costs are borne by others in society or the environment, not by the individuals or entities directly involved in the activities.

Which of the Following Is an Example of an Activity