An Externality Is Present in a Free Market Whenever

question 98

Multiple Choice

An externality is present in a free market whenever:

• A) a monopolist spends funds to keep potential competitors out of the market.
• B) an activity generates costs or benefits that are not reflected in market prices.
• C) firms hire employees from outside the firm to fill positions normally filled by promotion from within the firm.
• D) a tax is imposed on the supplier of a good.

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Definitions:

Strain

Refers to physical or psychological stress that results from exposure to demands or pressures.

Adolescence-Limited Offenders

Individuals who engage in criminal or delinquent behavior primarily during their adolescent years, with such behavior diminishing as they enter adulthood.

Developmental Risk Factors

Elements or conditions present in an individual's developmental stages that may impede normal development or contribute to later life challenges.

Life-Course-Persistent Offenders

Individuals who engage in criminal or antisocial behavior throughout their lives, starting from a young age.