Externalities

question 10

Multiple Choice

Externalities

• A) are always detrimental.
• B) are always beneficial.
• C) arise when all costs, external and private, are included in production cost.
• D) cause the price system to misallocate resources.

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Definitions:

Property Taxes

Taxes levied by local governments based on the estimated value of property and land owned, typically used to fund public services and infrastructure.

Unforeseen Expenses

Costs that were not planned or predicted, often arising suddenly and requiring immediate financial attention.

Ex-spouse

A term referring to a former husband or wife from whom one is divorced.

Alimony

Monetary payments by one ex-spouse to the other after a divorce (sometimes called spousal maintenance).