An External Diseconomy Occurs Whenever A(n)

question 14

Multiple Choice

An external diseconomy occurs whenever a(n) :

• A) action taken by a firm or individual results in uncompensated benefits to others.
• B) action taken by a firm or individual results in compensated benefits to others.
• C) action taken by a firm or individual results in compensated costs to others.
• D) firm trains workers in a highly specialized, firm-specific skill.
• E) action taken by a firm or individual results in uncompensated costs to others.

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Definitions:

Frederic Bastiat

A French economist and writer known for his advocacy of free markets and his critique of protectionism.

World Trade Organization

An international body that oversees global trade rules between nations, aiming to ensure trade flows as smoothly, predictably, and freely as possible.

Multinational Corporations

Large companies that operate and have assets in several countries, allowing them to produce and sell goods and services across national borders.

Trade Adjustment Assistance

A federal program designed to help workers who have lost their jobs as a result of international trade find new employment.