An externality is
A. a problem intrinsic to public goods: The good or service is so costly that its provision generally does not depend on whether or not any single person pays.
B. the amount a consumer pays to consume an additional amount of a particular good.
C. the total cost to society of producing an additional unit of a good or service.
D. a cost or benefit resulting from some activity or transaction that is imposed or bestowed on parties outside the activity or transaction.
Answer: D
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A voting procedure in which the winner must defeat each of the other alternatives in head-to-head contests is known as the
A) Borda-count method. B) Condorcet method. C) instant runoff method. D) plurality-rule method
Refer to the figure above. Total welfare can be increased by ________
A) increasing output above Q1 B) reducing output below Q1 C) lowering the market price below P1 D) increasing the market price above P2
When economists speak of full employment, they refer to the case in which the sum of frictional and structural unemployment is
A) falling over time. B) equal to zero. C) equal to the actual amount of unemployment. D) greater than the level of deficient demand unemployment.
If you expect the economy is going to boom and average income in the economy will rise in the foreseeable future, the type of firm that would be able to increase its sales if your expectations are met is
A) one that sells a luxury good. B) one that sells a necessity good. C) one that sells an inferior good. D) one that sells a price-inelastic good.