Externalities Occur When the Welfare of Others Not Involved in the Production

question 123

True/False

Externalities occur when the welfare of others not involved in the production or consumption of a good or service are affected in ways that markets don't take into account on their own.

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Definitions:

Intelligence

The ability to acquire and apply knowledge and skills, including the capacity for logic, understanding, self-awareness, learning, emotional knowledge, planning, creativity, and problem-solving.

Biological Processes

Natural processes vital for a living organism to maintain life, such as metabolism, homeostasis, and reproduction.

Empiricists

Philosophers who believe that knowledge comes primarily from sensory experience.

Human Diversity

The range of differences among humans, including but not limited to race, ethnicity, gender, age, sexual orientation, and disability.