Externalities Are

question 2

Multiple Choice

Externalities are

• A) unimportant matters that can be ignored as we use a commons.
• B) other commons beside the commons we are using at the time.
• C) effects that a user of the commons is not forced to pay at the time.
• D) effects that are gradually absorbed by the commons until they entirely disappear.

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Definitions:

Microeconomics

The branch of economics that focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, market equilibriums, and the effect of government regulations.

Individual Industries

Specific sectors of the economy focused on the production of certain types of goods or services.

Decision-Making Units

Groups or individuals within an organization that have the authority and responsibility to make choices that affect organizational outcomes.

Positive Economics

An approach to economics that seeks to understand behavior and the operation of systems without making judgments. It describes what exists and how it works.