An Externality Is a Situation in Which

question 217

Multiple Choice

An externality is a situation in which

• A) private costs diverge from social costs.
• B) internal costs diverge from private costs.
• C) there are no social costs.
• D) the cost borne by the consumer is greater than the monetary price.

---

Definitions:

Business Organizations

Structured entities built to conduct commercial activities or provide goods and services, operating under a defined set of rules and regulations.

Associative Learning

A learning process in which a connection is made between two stimuli or a stimulus and a response, foundational to behavioral psychology.

Events

Occurrences or happenings that are noteworthy or significant, often marked by certain ceremonies or activities.

Learning

The method of obtaining new, or changing current, knowledge, behaviors, skills, values, or preferences.