An Externality Is Defined as

question 34

Multiple Choice

An externality is defined as

• A)an additional cost imposed by the government on producers.
• B)an additional gain received by consumers from decisions made by the government.
• C)a cost or benefit that arises from production and falls on someone other than the producer, or a cost or benefit that arises from consumption and falls on someone other than the consumer.
• D)a marginal social cost.
• E)the additional amount consumers have to pay to consume an additional amount of a good or service.