Which of the Following Occurs When an Economic Activity Has

question 118

Multiple Choice

Which of the following occurs when an economic activity has a spillover benefit on third parties not engaged in the activity?

• A) A negative externality
• B) A positive externality
• C) A gain in producer surplus
• D) A gain in consumer surplus

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Definitions:

Work Group

A collection of individuals who collaborate towards achieving a common goal, often characterized by shared responsibilities and interdependence.

Peers

Individuals who are equal to one another in terms of status, age, or another specific criterion, often considered within a social or professional context.

Core Values

Fundamental beliefs or principles that act as guiding lights for behavior and decision-making within an organization or individual life.

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles, considering the impact of decisions on stakeholders.