Which of the Following Is Not True Regarding Externalities

question 55

Multiple Choice

Which of the following is not true regarding externalities?

• A) Externalities have no effect on market efficiency.
• B) Externalities are imposed on agents other than the parties to an economic exchange.
• C) Externalities can be either positive or negative.
• D) Externalities can occur in either consumption or production.

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Definitions:

Physical Size

The dimensions, volume, or extent of an object or person's body, often measured in terms of height, weight, or area.

In-Store Sampling

Offering free samples of products to customers within a retail environment to encourage trial and purchase.

National Advertising

Advertising designed to reach all users of the product, whether customers or industrial buyers.

Social Media Programming

The process of planning, creating, and managing content and campaigns on social media platforms.