An Externality Arises When a Person Engages in an Activity

question 464

Multiple Choice

An externality arises when a person engages in an activity that influences the well-being of

• A)buyers in the market for that activity and yet neither pays nor receives any compensation for that effect.
• B)sellers in the market for that activity and yet neither pays nor receives any compensation for that effect.
• C)bystanders in the market for that activity and yet neither pays nor receives any compensation for that effect.
• D)Both (a) and (b) are correct.

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Definitions:

Self-censorship

The act of censoring or withholding one's own speech or written work to avoid offending others or infringing upon standards of propriety.

Catholic Legion of Decency

A Roman Catholic organization founded in 1933 that rated films based on their moral content, influencing the viewing habits of American Catholics.

Lucille Fay LeSeur

The birth name of Joan Crawford, a legendary American film and television actress known for her dramatic roles and career longevity.

Stage Name

A pseudonym used by performers and entertainers instead of their real name, often for easier recognition, branding, or privacy reasons.