Economists Generally Call the Effect of an Agreement on Others

question 117

Multiple Choice

Economists generally call the effect of an agreement on others that is not taken into account by the parties making the agreement:

• A) excess burden.
• B) welfare loss.
• C) Pareto optimality.
• D) an externality.

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A method of questioning used to stimulate critical thinking, uncover underlying beliefs, and challenge assumptions, based on the teaching style of the ancient Greek philosopher Socrates.

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