Grade 11 · Social studies
Identify costs and benefits outside a transaction practice
Identify a stated external cost or benefit and distinguish it from costs borne only by the buyer and seller.
Opening your practice adventure…
Try a sample
A factory's runoff raises a downstream group's water-treatment expense. Which measurement most directly estimates the stated external cost?
- The downstream group's favorite color.
- The additional treatment cost attributable to the runoff.
- The number of words in the factory sign.
- The factory name's length.
See the answer & why
The additional treatment cost attributable to the runoff.
The effect named is an added expense imposed outside the sale.
A little hint: Look for a third party affected by the activity but not included in its transaction.
A teaching tip
Look for a third party affected by the activity but not included in its transaction.