An Externality Exists When

question 54

Multiple Choice

An externality exists when

• A) there are private costs.
• B) there are internal costs.
• C) there are external costs.
• D) there are opportunity costs.

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Definitions:

Interest Rate

A percentage that measures the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed.

Equal Payments

A series of payments of the same amount made at regular intervals for a specified period of time.

Loan Date

The specific date on which a loan agreement goes into effect or when the loan funds are disbursed.

Interest Rate

The percentage of a loan amount charged by the lender to the borrower for the use of money, expressed as an annual percentage.