Asked by
Garland Owls11
on Oct 26, 2024Verified
A coal-powered electrical generator that discharges smoke into the air and causes uncompensated costs and discomfort to residents of a town has a(n) :
A) quasi-public good.
B) external cost.
C) external benefit.
D) specific tax.
External Cost
A cost that affects parties who are not directly involved in a transaction, leading to negative outcomes like pollution that are not reflected in market prices.
Coal-Powered
Refers to machines, plants, or devices that operate or are fueled by coal.
Electrical Generator
A device that converts mechanical energy into electrical energy, typically through rotating a coil within a magnetic field.
- Comprehend the notion of negative externalities and their influence on societal well-being.
- Foresee the repercussions of external costs on market performance.
Verified Answer
DS
Learning Objectives
- Comprehend the notion of negative externalities and their influence on societal well-being.
- Foresee the repercussions of external costs on market performance.