Externalities

question 85

Multiple Choice

Externalities

• A)Occur because of government failure.
• B)Are the costs or benefits of market activities that "spill over" onto third parties.
• C)Occur because of selfish consumers.
• D)Occur because demand is hidden.

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Definitions:

Growth Needs

Are desires for continued personal growth and development.

Business Growth

The process of improving some measure of an enterprise's success, which can be achieved through increased revenue, profits, market share, or expansion.

Punitive Damages

Monetary compensation awarded to an injured party that exceeds simple compensation and is intended to punish the defendant.

Consequential Damages

Refer to indirect damages resulting from a breach of contract, not caused directly by the breach but instead by the subsequent consequences of that breach.