An Externality Can Best Be Defined as

question 289

Multiple Choice

An externality can best be defined as

• A) a party not directly involved in a transaction.
• B) a consequence of a transaction that spills over to affect third parties.
• C) a right of an owner to use and exchange property.
• D) a cost associated with the production of one more unit of output.

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Definitions:

Axioms

Self-evident truths or universally accepted principles that form the basis for reasoning or argument.

Implicit Beliefs

Refers to the attitudes or stereotypes that affect our understanding, actions, and decisions in an unconscious manner.

Cultural Statements

Expressions or manifestations that convey the values, beliefs, and norms of a society or group.

Sociocultural Influences

Factors stemming from society and culture that affect individual thoughts, behaviors, and emotions.