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:

Permanent Tax

A tax implemented with no predetermined end date, often considered to be indefinitely applied.

Temporary Tax

A temporary tax is a levy imposed by a government for a specific period before it is automatically revoked or reassessed.

Major Export

The primary good or service sold by a country to foreign markets.

U.S.

The United States of America, a federal republic consisting of 50 states and a federal district.