Which of the Following Is an Example of Detrimental Externality

question 213

Multiple Choice

Which of the following is an example of detrimental externality?

• A)A trailer's entry onto an overcrowded road that delays the movement of other vehicles.
• B)Fall in demand for gasoline in the United States softens the price of gasoline in the global market.
• C)Government investment in energy generation from nonconventional sources.
• D)Society devotes huge quantity of its scarce resources for vital innovative activity.

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Definitions:

Channel Functions

Activities involved in moving goods from producers to consumers, including distribution, transportation, and retailing.

Rack Jobbers

Merchandisers who lease space within retail stores to display and sell their own products, typically involved in the distribution of books, music, or electronics.

Consignment

A sales arrangement where goods are left with a third party to sell, but ownership remains with the supplier until sold.

Merchant Wholesalers

Businesses that buy goods in large quantities from producers to resell to retailers or other businesses, but not to end consumers.