An Externality Is Defined as

question 34

Multiple Choice

An externality is defined as

• A)an additional cost imposed by the government on producers.
• B)an additional gain received by consumers from decisions made by the government.
• C)a cost or benefit that arises from production and falls on someone other than the producer, or a cost or benefit that arises from consumption and falls on someone other than the consumer.
• D)a marginal social cost.
• E)the additional amount consumers have to pay to consume an additional amount of a good or service.

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Definitions:

General Public

The broad group of people in society who do not have a specific connection to an event, issue, or business.

Vice President of Operations

A high-level executive responsible for overseeing the day-to-day operational activities of a company to ensure efficiency and effectiveness.

Maritime Artifacts

Objects related to the sea and seafaring, such as shipwrecks, navigational instruments, and cultural objects from maritime communities, often used for historical study.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.