A Market Transaction Causes an Externality If Someone

question 183

Multiple Choice

A market transaction causes an externality if someone

• A) directly involved in the transaction receives uncompensated benefits or costs from it.
• B) not directly involved in the transaction receives uncompensated benefits or costs from it.
• C) directly involved in the transaction seeks legal assistance to ensure that the transaction is carried out.
• D) not directly involved in the transaction interferes in it by imposing regulations or product standards.

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Definitions:

Reconstruction

The period after the American Civil War during which the Southern states were reorganized and reintegrated into the Union, or more broadly, any period of rebuilding after significant destruction.

Reparations

Acts of compensation offered to victims in an effort to restore what has been lost. An aspect of the restorative justice model.

Retaliation

The act of returning an injury or wrong suffered at the hands of another, often seen in contexts of workplace discrimination or harassment.

Shared Culture

The common beliefs, practices, norms, and values among a group of people that guide behavior and foster a sense of community.