Externalities Are Only Inefficient When They Impose a Cost

question 178

True/False

Externalities are only inefficient when they impose a cost. They are not inefficient when they bestow a benefit.

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Definitions:

Counting System

A method or set of rules used for quantifying objects, typically involving numbers and operational symbols.

Body Parts

Structures that make up the anatomy of living organisms, including humans and animals.

Miller's Study

A significant psychological research conducted by George A. Miller in 1956, focusing on the limits of our capacity for processing information, notably finding that humans can hold about 7 (plus or minus 2) items in their working memory.

One-One Principle

A fundamental principle of counting that states each object being counted must be assigned one, and only one, number to represent it.