Question

what is an additional external cost?
the tax imposed on pollution emissions.
a cost that firms incur to meet government regulations.
the private cost borne by a firm in production.
the cost to a firm for producing one more unit.
costs incurred by third parties outside the production process.
question 2
what is biodiversity?
the economic value of a country’s natural resources.
the measurable genetic diversity within a single species.
the full spectrum of animal and plant genetic material.
the total property rights granted to firms.
the variety of external costs in pollution regulation.
question 3
what is command-and-control regulation?
taxes imposed on pollution emissions.
policies designed to internalize externalities.
programs allowing firms to trade pollution permits.
laws that specify pollution limits and required technologies.
the regulation of international externalities.

Explanation:

• Question 1: An external cost is a cost that is suffered by a third - party as a result of an economic transaction. So, “Costs incurred by third parties outside the production process” is the correct definition of an additional external cost.
• Question 2: Biodiversity refers to the variety and variability of life on Earth. It encompasses the full spectrum of plant and animal genetic material.
• Question 3: Command - and - control regulation involves the use of laws and regulations to specify pollution limits and required technologies.

Answer:

1. Costs incurred by third parties outside the production process.
2. The full spectrum of animal and plant genetic material.
3. Laws that specify pollution limits and required technologies.