A Positive Externality Arises in a Situation Where a Third

question 67

Multiple Choice

A positive externality arises in a situation where a third party, outside the transaction,

• A) fails to allocate resources efficiently.
• B) suffers from a market transaction by others.
• C) benefits from a market transaction by others.
• D) pays a pollution tax to balance social costs.

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Definitions:

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A preliminary drawing or outline intended to showcase or plan the layout of an art exhibit or gallery.

Photo Montage

A composite picture made by combining several different photos, typically arranged in a way that blends them into a coherent whole.

Video

Moving visual media that can be recorded, streamed, or played back for the purpose of entertainment, education, or communication.

Single Business Plan

A strategic document outlining the operational and financial objectives of a business, and detailed plans and budgets showing how the objectives are to be realized.