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Steve Is Thin and Seems to Be Able to Eat

question 25

Multiple Choice

Steve is thin and seems to be able to eat as much as he wants while not gaining weight. Which concept is a possible explanation for his ability to stay thin?


Definitions:

Externality

An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer.

Market Exchange

The process through which goods, services, or assets are traded between buyers and sellers at a determined price.

Negative Externalities

Unintended and unfavourable outcomes of an activity or transaction that affect third-party stakeholders who did not choose to be involved in that activity.

Positive Externalities

Benefits experienced by a third party not directly involved in the production or consumption of a good or service.

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