A _____ Occurs When Someone Who Is Not Involved in a Transaction

question 50

Multiple Choice

A _____ occurs when someone who is not involved in a transaction is harmed by it.

• A) government failure
• B) negative failure
• C) government externality
• D) negative externality

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Definitions:

Contract Terms

Specific provisions or conditions outlined in a contract that define the obligations, rights, and duties of the parties involved.

Negotiations

The process of discussing and arriving at a mutual agreement between parties with differing interests.

Mail

The system for sending letters and packages from one place to another through a postal service.

Time Limit

A specified period within which an action must be taken or completed.