Why Do Externalities Arise

question 90

Multiple Choice

Why do externalities arise?

• A)The costs of production are not borne by the producer
• B)An economic activity imposes a burden on them who are not directly involved in it
• C)An economic activity imposes a cost on them who are directly involved in it
• D)The government produces such goods and services which are consumed by only a particular class of people
• E)Goods of mass consumption are not produced as they do not yield profit for the producers

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