Which of the Following Is an Example of Externalities

question 102

Multiple Choice

Which of the following is an example of externalities?

• A)There are not enough tickets available to concerts of extremely popular performers.
• B)The price of medical care has risen dramatically as a result of the introduction of sophisticated equipment and techniques.
• C)Polio shots and chest x-rays provide widespread benefits to the community as a whole as well as to the individuals who get them.
• D)Extensive decreases in the prices of electronic equipment resulted in large numbers of bankruptcies in the computer industry.

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Definitions:

Option Contract

A contract that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific time frame.

Standard Sales Contract

An agreement that outlines the terms and conditions of a sale, typically using established clauses to facilitate common transactions.

Adhesion Contract

A standard-form contract prepared by one party, usually favoring that party, to which the other party has little negotiation power and often must accept as is.

Outward Manifestation

Outward manifestation refers to the external display or expression of a condition, intention, or agreement, observable by others.