An Externality Is

question 89

Multiple Choice

An externality is

• A)the amount by which price exceeds marginal private cost.
• B)the amount by which price exceeds marginal social cost.
• C)the effect of government regulation on market price and output.
• D)someone who consumes a good without paying for it.
• E)a cost or benefit that arises from an activity but affects people not part of the original activity.

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Definitions:

Network of Providers

A group of healthcare providers, such as doctors and hospitals, that agree to offer services to a specific health insurance plan's members at negotiated rates.

Plan Members

Individuals who are enrolled in and receive benefits from a health insurance plan or program.

Explanation of Payment

A detailed description or clarification of why a payment was made and what it covers.

Remittance Advice

A document sent by a payer to a payee, providing details on the payment of an invoice, including information on any adjustments or deductions taken.