An externality can best be defined as
A) a party not directly involved in a transaction.
B) a consequence of a transaction that spills over to affect third parties.
C) a right of an owner to use and exchange property.
D) a cost associated with the production of one more unit of output.
Answer: B
Economics
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Refer to Figure 13-1. Ceteris paribus, an increase in government spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Economics
What was not a problem with using commodity money in the US colonies prior to 1700?
a. Very few people were willing to accept commodities as payment. b. Commodity spoilage rates were high. c. Controlling the quality of payments made with commodities. d. High storage costs of commodities.
Economics