An Externality Exists Whenever

question 140

Multiple Choice

An externality exists whenever

• A)the economy can benefit from government intervention.
• B)markets are not able to reach equilibrium.
• C)a firm sells its product in a foreign market.
• D)a person engages in an activity that influences the well-being of a bystander and yet neither pays nor receives payment for that effect.

---

Definitions:

Safety-Related Reasons

Justifications or motives regarding the prevention of harm, injury, or any adverse conditions for individuals or groups.

Empathy

The ability to understand and share the feelings of another person from their perspective.

Peel-the-Onion

A method of problem-solving that involves examining complex issues layer by layer to uncover the root cause.

Core Root

The fundamental underlying basis or main cause of an issue, problem, or system.