How Are Externalities Defined

question 9

Multiple Choice

How are externalities defined?  

• A) as any transaction external to the firm 
• B) as costs or benefits that fall on third parties 
• C) as policies that firms undertake to sell products outside the country 
• D) as managers' dealings with shareholders outside the firm

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Definitions:

Social Support

The perception or reality of care, assistance, and encouragement received from others, which can affect an individual's health and wellbeing.

Psychological Health

A condition of good health where a person acknowledges their own capabilities, manages the usual pressures of life effectively, contributes productively at work, and can make a positive impact on their community.

Minor Control

A lesser degree of regulation or command over a situation or process.

Ellen Langer

A psychologist known for her work on the illusion of control, aging, and mindfulness.