It Is True of Externalities That They

question 68

Multiple Choice

It is true of externalities that they

• A)are always detrimental.
• B)are always beneficial.
• C)arise when all costs, social and private, are included in production cost.
• D)cause the price system to misallocate resources.

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Definitions:

FTC

stands for the Federal Trade Commission, a U.S. government agency tasked with consumer protection and the enforcement of antitrust laws to promote competition.

Holder in Due Course

A party that has acquired a negotiable instrument in good faith and for value, and thus has certain rights to enforce the instrument free from many defenses.

Bankruptcy Protection

A legal status that provides a person or entity temporary relief from creditors and lawsuits while reorganizing or discharging debts under the bankruptcy code.

Holder in Due Course

A legal term for a person who has obtained a negotiable instrument in good faith and for value, thus having certain protections.