Which of the Following Is the Best Description of a Negative

question 4

Multiple Choice

Which of the following is the best description of a negative externality?

• A) an economic transaction that favors the buyer
• B) an economic transaction that favors the seller
• C) prices for a product that taxes force beyond the affordable reach of those earning an average income
• D) an unintended cost imposed on someone not involved in an economic transaction

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Definitions:

Eating at Home

Refers to the preparation and consumption of meals within one's residence, often considered a cost-effective and healthier alternative to dining out.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting the sensitivity of quantity demanded to price changes.

Funeral Homes

Businesses that provide services related to the burial, cremation, funeral ceremonies, and management of the deceased's final arrangements.

Revenue

The total income generated by a firm from its business activities, typically from the sale of goods and services to customers, before any expenses are deducted.