Which of These Statements Concerning Externalities Is Correct

question 221

Multiple Choice

Which of these statements concerning externalities is correct?

• A)There would be no justification for government involvement in the economy if it were not for externalities.
• B)An externality can only arise when one person (or a small group of persons) has the ability to unduly influence market prices.
• C)An externality can arise only when two or more countries are engaged in trade with one another.
• D)An externality arises when one person's actions have an impact on the well-being of others.

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Definitions:

Functional Relation

In behavioral science, a relationship between a specific behavior and its consequences, indicating how the behavior is influenced by or depends on certain environmental conditions.

Data Collection Methods

The various approaches and tools used to gather information or data for analysis in research settings, can include surveys, interviews, observations, and experiments.

Graphs

Visual representations of data designed to show comparative information or trends over time, typically using a series of points, lines, bars, or slices.

Alternating Treatments Design

An experimental design in behavior analysis that allows the comparison of two or more interventions by alternating them in a rapid succession to observe their effects on behavior.