Of the Following, Which Is the Best Example of an Externality

question 43

Multiple Choice

Of the following, which is the best example of an externality?

• A) a decision made by a U.S. company to move its operations overseas
• B) a decision by a company to fire undocumented workers
• C) the pollution that results from a firm's manufacturing process but for which the firm doesn't have to pay
• D) the share of a firm's profits that are donated to charities
• E) the share of a firm's profits that are paid out as dividends to stock holders

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Definitions:

Style of Life

A concept introduced by Alfred Adler, referring to an individual's unique way of achieving superiority and coping with feelings of inferiority, shaped by early childhood experiences.

Traits

Enduring personality characteristics and behaviors that are consistent across different situations and time.

Temperament Traits

Innate, biologically based behavioral and emotional characteristics that are evident from early life.

Ergs

Basic instinctual drives or primary motivational forces in some psychological theories; the term originates from the work of Sigmund Freud.