An Example of an Externality Is the Impact of

question 46

Multiple Choice

An example of an externality is the impact of

• A)bad weather on the income of farmers.
• B)the personal income tax on a person's ability to purchase goods and services.
• C)pollution from a factory on the health of people in the vicinity of the factory.
• D)increases in health care costs on the health of individuals in society.

Differentiate between capital market instruments and money market instruments.

Understand the primary and secondary financial markets and the role of financial intermediaries.

Comprehend the mechanisms of raising capital in financial markets through the issuance of securities.

Recognize the types of financial intermediaries involved in direct and indirect financial intermediation.

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Definitions:

Relational Stages

The various phases that relationships go through, from initial formation and intensification to possible decline and dissolution.

Progressing Speed

The rate at which something moves forward or develops.

Reflective Turning Point

Event that signals a change in the way a relationship is defined.

Proposes

Suggests something for consideration or action.