What Is an Externality

question 73

Multiple Choice

What is an externality?

• A)A good that is nonexcludable but rival in consumption
• B)A cost or benefit for stakeholders other than the actor undertaking an action
• C)An effect created by the interaction between two states
• D)A good that is nonexcludable and nonrival in consumption
• E)An international agency that monitors compliance with regulations

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Definitions:

Best Practice

A method or technique acknowledged as more effective and efficient compared to others in a certain field or industry.

Governs

Governs involves the conduct, direction, or regulation of the policies and affairs of a group or sector, typically denoting the act of exercise in authority or control.

Nominating Committee

A group within an organization responsible for recommending candidates for board or committee memberships.

Naming Committee

A group of individuals tasked with the responsibility of choosing names for new initiatives, projects, buildings, or entities.