Which of the Following Would Most Likely Generate a Negative

question 25

Multiple Choice

Which of the following would most likely generate a negative externality?

• A) Education
• B) A lighthouse
• C) Cigarette smoke
• D) Employment

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Definitions:

Valid Consideration

A component of contract law that ensures all parties involved agree to give or do something of value in exchange for a benefit.

Bilateral Contract

A promise exchanged for a promise.

Consideration

In contract law, the value (which could be an action, object, or service) that is exchanged between parties entering into a contract.

Consideration

a legal principle involving something of value exchanged between parties within a contract, making the agreement enforceable.