Which of the Following Is True of Externality

question 43

Multiple Choice

Which of the following is true of externality?

• A)An externality enhances the efficiency of the market system.
• B)An externality is not an economic problem because it is external to the market.
• C)An externality is a cost borne by the people who are directly or indirectly involved in the production of a good or service.
• D)An externality accrues to someone who had nothing to do with the production or consumption of a good or service.
• E)An externality refers to some unexpected change in the equilibrium price or quantity of a product.

Calculate confidence intervals for population proportions.

Conduct hypothesis testing for population proportions.

Understand the effect of sample size on the power of a test and the accuracy of estimations.

Calculate point estimates and standard errors for different population parameters.

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Definitions:

Resource

Assets, materials, or inputs utilized in the production of goods and services.

First Year

Refers to the initial year of an activity or entity's existence, often used in the context of a company's operations or a student's academic experience.

Extraction Costs

The expenses associated with the removal of raw materials from the earth or the harvesting of natural resources.

User Costs

Expenses incurred by consumers or firms for the use of assets, services, or capital, which can affect decisions on consumption or investment.