An Externality Occurs When

question 7

Multiple Choice

An externality occurs when:

• A) production of a good results in impacts external to the market
• B) consumption of a good results in impacts external to the market
• C) either A or B
• D) neither A nor B

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Definitions:

Urban Sprawl

The uncontrolled expansion of urban areas into the surrounding countryside, often criticized for environmental and social reasons.

Megacities

Extremely large cities, typically with a population of over 10 million people, often facing unique social, economic, and environmental challenges.

Public Water

Public water refers to the supply of water provided by government or municipal bodies to communities for drinking, washing, and other domestic purposes.