A Positive Externality Is the Positive Effect That

question 30

Multiple Choice

A positive externality is the positive effect that:

• A)an action has on the decision maker.
• B)an action has on others that is not taken into account by the decision maker.
• C)external forces have on society as a whole.
• D)external forces have on a decision maker.

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Definitions:

Economic Recessions

Periods when an economy experiences a decline in gross domestic product, income, employment, and trade lasting for several months or years.

Nonprofit Organizations

Entities that operate for a collective, public or social benefit, rather than to generate profits for owners or investors.

Environmental Scanning

A process used by companies to monitor their external and internal environments to detect early signs of opportunities and threats that may influence future strategies.

Market Opportunities

Identifiable segments within a market where a company can focus its efforts to offer a product or service that meets a need, often through competitive advantage.