The external benefits of using cars are ____ and the external costs are _____?
Correct answer: C. low; high
- A. low; low
- B. high; high
- C. low; high
- D. high; low
Explanation
Cars provide some external benefits, but these are generally small compared with the external costs imposed through congestion, pollution, noise, and accidents. Thus the standard comparison is low external benefits and high external costs.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
Antimonopoly laws are based on the proposition that ?
A conglomerate merger is a merger of ?
Sales staff are keen to sell extended warranties because ?
Between 1990 and 1999 car ownership per thousand of the population fell in ?
In the country X it is now becoming possible to buy electricity from a gas company and gas from an electricity company. This is called ?
De-regulation is where the government ?