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:

Stapes

The smallest bone in the human body, located in the middle ear, playing a key role in the transmission of sound vibrations.

Prosthesis

An artificial device used to replace a missing body part, such as a limb, tooth, eye, or heart valve.

Hearing Loss

A partial or total inability to hear sounds in one or both ears.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing most of the eye's focusing power.