A Group of Workers Applied for Work at a Company

question 263

True/False

A group of workers applied for work at a company looking to hire workers. They were locked in an enclosure and the police were called to report that they were trespassing. The workers could not sue for false imprisonment because the property owner was defending company property.

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Definitions:

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction.

Negative Externalities

Unintended adverse effects of an economic activity on unrelated third parties; they represent a failure of the market to fully account for the impacts of transactions.

Social Planner

A hypothetical figure in economic theories who makes decisions designed to allocate resources efficiently and achieve social welfare objectives.

Private Cost

The expenses that a company or an individual incurs as a result of its economic activity, excluding any external costs.