Use the Following Statements to Answer This Question

question 22

Multiple Choice

Use the following statements to answer this question:
I. Stock externalities depend on the accumulated results of actions by producers or consumers, not on the incremental results that may occur in a given period of time.
II. Stock externalities are always negative externalities.

• A) I and II are true.
• B) I is true and II is false.
• C) II is true and I is false.
• D) I and II is false.

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Definitions:

Hotel Room

A private room in a hotel, inn, or similar establishment where travelers can sleep, rest, and utilize basic amenities for a temporary period.

Indifference Curve

A graph showing different bundles of goods between which a consumer is indifferent, representing equal levels of satisfaction.

Enchiladas

A traditional Mexican dish consisting of corn tortillas rolled around a filling and covered with a chili pepper sauce.

Perfect Complements

Goods a consumer wants to consume in the same ratio, regardless of their relative price.