A Positive Externality Is the Positive Effect That

question 30

Multiple Choice

A positive externality is the positive effect that:

• A)an action has on the decision maker.
• B)an action has on others that is not taken into account by the decision maker.
• C)external forces have on society as a whole.
• D)external forces have on a decision maker.

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Definitions:

Mortgages

Loans secured by real property, typically used by individuals or businesses to purchase homes or real estate.

Bank Loans

Funds lent by a bank to a borrower at a specified interest rate for a fixed term.

Financial Assets

Financial assets are intangible assets that derive value because of a contractual claim, such as stocks, bonds, bank deposits, and the rights to receive cash in the future.

Claims On Real Assets

Financial securities or other types of financial instruments that confer ownership or a right to a portion of the value of tangible assets.