It Is True of Externalities That They

question 146

Multiple Choice

It is true of externalities that they

• A)arise when all costs, social and private, are included in production cost.
• B)are always beneficial.
• C)are always detrimental.
• D)None of the above are correct.

---

Definitions:

Express Warranty

Any description of a good’s physical nature or its use, either in general or specific circumstances, that becomes part of a contract.

Puffing

refers to exaggerated or hyperbolic comments about a product or service that are subjective opinions, not intended to be taken as facts or guarantees.

Express Warranty

An express warranty is a seller's promise or guarantee about the quality or functionality of a product, explicitly stated in the contract or marketing materials.

Physical Nature

Pertains to the material aspects or characteristics of something, focusing on its tangible properties.