An Externality Can Occur When

question 18

Multiple Choice

An externality can occur when:

• A)a voluntary transaction between two individuals creates economic value.
• B)a person's action affects another's wealth either positively or negatively.
• C)a self-interested individual tries to maximize his/her profits.
• D)a voluntary transaction between two individuals creates economic loss.

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Definitions:

Mass Media

Various forms of communication technologies that reach a large audience via mass communication, such as newspapers, television, radio, and the internet.

Large Audience

A significant number of people who receive and interpret messages or content from various media or public speaking engagements.

Communication Technologies

Tools and mediums used for the transmission of information from one place to another, including the internet, radio, television, and mobile phones.

Papyrus

An early form of paper made from the pith of the papyrus plant, used in ancient Egypt and other Mediterranean societies for writing documents.