Which of the Following Is NOT an Example of an Externality

question 249

Multiple Choice

Which of the following is NOT an example of an externality?

• A)A bread company emits a wonderful aroma in the air that makes people smile.
• B)The neighbor's wind chimes interfere with your sleep.
• C)A firm fires 500 people.
• D)Cancer-causing chemicals are dumped into the drinking water supply of a city.

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Definitions:

Joint Production Costs

Costs incurred during the process of producing two or more products simultaneously from the same inputs or process, which are not easily separated.

Economic Characteristics

Traits that define the nature of an economy, including factors like market structure, growth rate, and resource distribution.

Physical Units Method

An approach to costing that assigns costs based on the actual physical quantity of output produced.

Process Further

The action or decision to continue the production or refinement of a product beyond the initial stages to improve its value or quality.