An externality is_____
a. an unintended by-product of market exchange that is allocated outside the market system
b. an intended by-product of market exchange that is allocated outside the market system
c. an unintended by-product of market exchange that is allocated within the market system
d. an intended by-product of market exchange that is allocated within the market system
a
You might also like to view...
Your textbook uses the "bite, chew, choke" story to explain
A) how restrictive monetary policy leads to a recession. B) how expansionary monetary policy ultimately leads to a recession. C) how restrictive fiscal policy leads to a recession. D) how expansionary fiscal policy ultimately leads to a recession.
Last year in the country of Nerf imports equaled exports. Nerf's GDP was $500 million, its consumer expenditure was $380 million, and its investment was $20 million. Nerf's government expenditure on goods and services were ________
A) $100 million B) $900 million C) $500 million D) zero