Which of the Following Best Describes an Externality

question 258

Multiple Choice

Which of the following best describes an externality?

• A) something that is external to the economy
• B) a sales tax on a good in addition to the market price
• C) an effect of a transaction felt by someone other than the buyer or seller
• D) anything produced in other countries
• E) a change from what is normal

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Definitions:

Petty Cash Custodian

The person responsible for managing a small amount of cash for minor, routine business expenses.

Postage Due

The fee charged for delivering mail for which sufficient postage has not been prepaid by the sender.

Replenish

The act of refilling or restoring to its original level, often used in reference to inventory or petty cash funds.

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses.