An Externality Is Defined as

question 36

Multiple Choice

An externality is defined as

• A)the revenue generated by a firm in the external market
• B)a byproduct of a good or activity that affects someone not immediately involved in the transaction
• C)an additional cost of consumption that is borne by a third party
• D)a cost or benefit arising from price changes
• E)the value of a good or service to a consumer

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Definitions:

Gold Standard Act

A U.S. law passed in 1900 that established gold as the sole basis for redeeming paper currency, effectively setting a monetary standard where the value of currency is defined in terms of gold.

Support of Business

Refers to policies or actions, typically by governments, intended to assist and promote the growth and success of the private sector.

Presidential Campaign

a series of coordinated activities, including public appearances and policy discussions, aimed at securing election to the presidency.

William McKinley

25th President of the United States, led during the Spanish-American War, assassinated in 1901.