An Externality Occurs When ________

question 148

Multiple Choice

An externality occurs when ________.

• A) the quantity demanded of a good exceeds the quantity supplied
• B) the quantity supplied of a good exceeds the quantity demanded
• C) the government regulates production and consumption decisions
• D) an economic activity affects third parties not engaged in the activity

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Definitions:

Disadvantages

The negative aspects or conditions that can hinder success or efficiency.

Paradoxical Conflict

A situation involving two opposite ideas or requirements that seem impossible but are potentially solvable or manageable.

Entrepreneurial Process

A sequence of steps taken by entrepreneurs to conceive, design, launch and manage a new business successfully.

Conservation

The practice of protecting, preserving, managing, or restoring natural environments and their inhabitants.