An Externality Is Said to Exist When

question 33

Multiple Choice

An externality is said to exist when:

• A)individuals impose costs or benefits on others but have no incentive to take these costs and benefits into account.
• B)individuals impose costs or benefits on others,and the market provides incentives to take these costs and benefits into account.
• C)individual actions are affected by external forces like the loss of U.S.jobs because of competition from abroad.
• D)individual actions are affected by government policies (such as taxes)that are externally imposed on the market.

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Definitions:

Continuity

The principle that certain properties remain consistent or stable over time despite changes or transformations in the environment.

Stages

Sequential phases that represent steps in a process of development or a series of events.

Visual Interest

An aspect of visual design that evokes a sense of curiosity or engagement in viewers, often through contrast, color, pattern, or composition.

Newborns

Infants from birth to one month old, in the earliest stage of life outside the womb.