An Externality Is

question 442

Multiple Choice

An externality is

• A)the costs that parties incur in the process of agreeing and following through on a bargain.
• B)the uncompensated impact of one person's actions on the well-being of a bystander.
• C)the proposition that private parties can bargain without cost over the allocation of resources.
• D)a market equilibrium tax.

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Definitions:

Multiple Proportions

This is a law stating that when two elements combine to form more than one compound, the masses of one element that combine with a fixed mass of the other are in a ratio of small whole numbers.

Different Ratios

Proportions or comparative quantities of elements or components in a mixture or compound.

Compound

A substance made up of two or more different elements chemically combined in fixed proportions.

Elements

Pure chemical substances consisting of a single type of atom, distinguished by their atomic number, which is the number of protons in their atomic nuclei.