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Question: 6 the costs of a market activity paid for by...

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6    The costs of a market activity paid for by an individual NOT engaged in the market activity are ________ costs.

a.

External

d.

social

b.

Internal

e.

common

c.

free-rider

7.    An external cost is best defined as the cost of an activity paid for by

a.

the individual who is engaged in the activity.

b.

the government.

c.

a third party.

d.

a free-rider.

e.

the individual and the third party.

4.    The personal decisions of consumers and firms are based on ________ cost(s).

a.

External

d.

third-party

b.

Social

e.

public-good

c.

Internal

8. The cost of an activity paid for by the individual and the third party is defined as a(n) ________ cost.

a.

Internal

d.

third-party

b.

Social

e.

public-good

c.

External

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