If a Market Exchange Imposes Costs on a Party Not

question 29

Multiple Choice

If a market exchange imposes costs on a party not involved in the transaction, the cost is called a

• A) positive externality.
• B) negative externality.
• C) public good.
• D) tragedy of the commons.

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Definitions:

Insecure Attachment

A type of attachment characterized by anxiety and uncertainty in relationships, often resulting from inconsistent caregiver responsiveness in early childhood.

United States

A country located in North America, consisting of 50 states, a federal district, five territories, and various possessions.

Puerto Rico

A Caribbean island and unincorporated territory of the United States, with a rich cultural heritage and diverse ecosystem.

Japan

An island country located in East Asia, known for its rich history, cultural heritage, technological advancements, and economic power.