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'The costs of business activities which are not reflected in the costing of a product or service and paid for by consumers, but which are borne by the wider community -- such as the costs of pollution and associated ill health, traffic congestion or environmental degradation' are known as:
Suggested Answer: A
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We are now aware that the cost of externalities to society are considerable. A simple example would be that proximity to flow of motor vehicles is likely to increase ill-health requiring state-funded medical services where they exist, to treat at state (taxpayers') expense those who become ill. In the UK the number of people affected this way is believed to be numbered in the tens of thousands an-nually. Thus some businesses' cost structures do not reflect their true cost to society.
Another example would be the discharge of untreated waste into rivers or the sea, where the com-panies undertaking these activities may not be contributing financially to the cleaning up required.
In future years there is likely to be much debate about this, as some people will attempt to find ways to make companies pay the full cost of running their businesses.
39 comments · newest first
CL
Clarence
11 months ago
Not sure about this, seems like a stretch to call it externalities.
EM
Emile
11 months ago
A is correct, it's all about those hidden costs.
CH
Chauncey
12 months ago
Wait, are we really paying for pollution? That's wild!
EL
Eleonore
12 months ago
I disagree, I think it's more about overheads.
BE
Ben
1 year ago
Definitely A, externalities are a big deal!
ST
Stacey
1 year ago
Taxation seems off for this question, but I can't quite recall the exact definition of externalities.
LA
Lajuana
1 year ago
I feel like I've seen a similar question before, and externalities were definitely mentioned in that context.
LA
Lakeesha
1 year ago
I'm not entirely sure, but I remember something about overheads being more related to internal costs.
SK
Skye
1 year ago
I think the answer might be A, externalities. We talked about how they affect the community in class.
AM
Amina
1 year ago
Ah, I see what they're getting at. Externalities are the hidden costs that businesses don't have to account for in their pricing. Gotta remember that for the exam.
VI
Virgina
1 year ago
Externalities, got it. This is a classic economics question testing our understanding of market failures and the social costs of business activities.
MA
Man
1 year ago
Hmm, I'm a bit confused by this one. I'll have to think it through carefully to make sure I understand the concept of externalities.
IV
Ivette
1 year ago
I'm pretty sure this is asking about externalities - the costs that businesses don't have to pay for but that impact the wider community.
ME
Mee
1 year ago
This seems like a tricky one. I'll need to carefully read through the question and options to figure out the best approach.
LA
Laura
1 year ago
Hmm, I'm not too familiar with this type of regex pattern. I'll need to review my notes on common attack signatures to try and identify what this might be indicating.
CE
Cecil
1 year ago
This one seems pretty straightforward. I'm pretty confident the answer is D, encryption.
LA
Lakeesha
1 year ago
This looks like a straightforward ANOVA question. I'll need to calculate the main effect of factor A based on the data provided in the image.
LE
Lettie
2 years ago
Externalities, hands down. The way they dump their problems on the rest of us is like a sneaky game of hot potato. Someone should tell them, 'Hey, you made the mess, now clean it up!'
AV
Avery
2 years ago
I'm going with Externalities. Pollution and traffic jams, the hidden price we all pay for their bottom line. Gotta love how they conveniently forget about that stuff.
RO
Romana
2 years ago
Externalities can have serious consequences for the environment and public health. It's important for businesses to consider these impacts.
VE
Vernice
2 years ago
Externalities can have a huge impact on society and the environment, we need to address them.
MI
Minna
2 years ago
Definitely, it's unfair that the public has to bear the burden of these costs while companies profit.
DE
Desire
2 years ago
I agree, externalities are a big issue. Companies should be held accountable for the hidden costs they impose on society.
IO
Iola
2 years ago
I think we need better regulations to make businesses accountable for these external costs.
AL
Alana
2 years ago
Lavonna: Definitely, it's important for businesses to consider the impact of their actions on society as a whole.
LA
Lavonna
2 years ago
Yeah, it's unfair that the wider community has to bear the burden of these costs.
HE
Herschel
2 years ago
Definitely, it's unfair that the wider community has to bear the costs of their actions.
JE
Jennifer
2 years ago
I agree, externalities are a big issue that businesses often overlook.
MA
Margot
2 years ago
I agree, externalities are the hidden costs that businesses don't take into account.
JA
Janey
2 years ago
I don't think so, overheads are different from externalities.
SY
Sylvia
2 years ago
But what about B) Overheads? Could that be the answer?
LA
Laurel
2 years ago
Externalities, no doubt. These hidden costs are like the dark side of capitalism, lurking in the shadows. Gotta keep an eye on those greedy companies, am I right?
NI
Nieves
2 years ago
Ah, the hidden costs that the big corporations don't want us to know about! Externalities for sure, they can't hide behind their fancy spreadsheets forever.
PR
Princess
2 years ago
No, overheads are different from externalities. They are the costs of running a business.
PA
Paola
2 years ago
B) Overheads
NA
Nancey
2 years ago
Exactly! Those costs are often overlooked but have a huge impact on society.
SH
Shalon
2 years ago
A) Externalities
SH
Shannon
2 years ago
I agree with Janey, externalities are costs borne by the wider community.
JA
Janey
2 years ago
I think the answer is A) Externalities.