An Externality Is Defined as

question 204

Multiple Choice

An externality is defined as

• A)an opportunity cost that is not considered, which causes inefficiency.
• B)a social cost that affects parties external to a transaction.
• C)a transaction which imposes a loss on one of the parties involved.
• D)a "cost of doing business" that cannot be allocated to any particular good.
• E)the increase in cost associated with increased production.

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Definitions:

Summarizing

The process of concisely restating the main points of information or a conversation.

Paraphrasing

The act of rephrasing or rewording someone else's text or speech to clarify meaning or to make it easier to understand, while maintaining the original message.

Clarification

The process of seeking or providing explanation or additional information to make something clear or understandable.

Vague Explanations

Descriptions or reasons that are unclear, imprecise, and lacking in detail.