What Are Externalities

question 3

Multiple Choice

What are externalities

• A)side effects passed on to a party other than the buyers and sellers in the market
• B)external forces that help establish equilibrium price
• C)external forces that cause the price of a good to be higher than it otherwise would be
• D)side effects of government intervention in markets

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Definitions:

Political Bodies

Organizations or entities that govern a society, make and enforce laws, and oversee public policy and administration.

Interconnected

The state or condition of being connected with each other, especially referring to systems, objects, or concepts that are linked in a complex way.

Michel Foucault

A French philosopher and social theorist known for his influential work on the nature of power, knowledge, and social institutions.

Autonomous

Having the ability or right to govern oneself or make decisions independently, without external control.