An Externality Is

question 23

Multiple Choice

An externality is

• A) a cost or benefit resulting from some activity or transaction that is imposed or bestowed on parties outside the activity or transaction.
• B) the total cost to society of producing an additional unit of a good or service.
• C) the amount a consumer pays to consume an additional amount of a particular good.
• D) a problem intrinsic to public goods: The good or service is so costly that its provision generally does not depend on whether or not any single person pays.