E. Fluorine
3. An external cost is one that is associated with the use of a good or service but is not included in
its initial cost. The combustion of fossil fuels like coal and oil release impurities associated with
the fuels into the atmosphere. These impurities can impact the environment and human health
by damaging the surface of plants or impacting human respiratory health. Which of these
actions would best address the issue of externalities not being included in the costs of fossil
fuels?
a. Reducing the electricity bills of homeowners by 10%
b. Decreasing the reliance on fossil fuels by building more wind farms
c. Increasing the fuel tax associated with the price of a gallon of gas
d. Reducing the allowable limits of emissions for point source factories