Sometimes, When Goods Are Produced and Consumed, Side Effects Are

question 7

Multiple Choice

Sometimes, when goods are produced and consumed, side effects are felt by people who are not directly involved in the market exchanges. In general, these side effects are called

• A)Coase effects.
• B)externalities.
• C)public goods.
• D)internalities.
• E)none of the above

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Definitions:

Equilibrium Economic Rent

The excess returns to a factor of production over its opportunity cost when the market is in equilibrium, ensuring no incentive for resources to move.

Nationalization

The process by which a government takes control of a company or industry, often turning it from private to state ownership.

Scarce Resource

A resource that is limited in availability and cannot meet all demands placed on it by humans wanting unlimited access.

Farmland

Land used for farming and agriculture purposes to grow crops and/or rear animals, playing a critical role in the food supply chain and the economy.