Asked by Cansu Deniz on Jul 17, 2024
Verified
________ is a cost or benefit resulting from some activity or transaction that is imposed or bestowed on parties outside the activity or transaction.
A) An externality
B) Marginality
C) Utility
D) A provisional injunction
Externality
An economic side effect of a good or service that generates benefits or costs to someone other than the person deciding how much to produce or consume.
Activity
Any action or task undertaken by individuals or groups, often resulting in production or consumption of goods or services.
- Familiarize oneself with the concept of externalities and their repercussions on societal health.
Verified Answer
AF
Aimee FloresJul 23, 2024
Final Answer :
A
Explanation :
An externality is a cost or benefit that affects a party who did not choose to incur that cost or benefit. It occurs when the actions of individuals or businesses have effects on third parties that are not reflected in market prices.
Learning Objectives
- Familiarize oneself with the concept of externalities and their repercussions on societal health.
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