An Example of an Externality Is

question 64

Multiple Choice

An example of an externality is:

• A)a drought reducing wheat production in Australia
• B)an increase in the price of bread after a sales tax is imposed
• C)a new road that increases noise levels in adjacent houses
• D)a firm that loses market share after a new firm enters the market

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Definitions:

Collectivism

A social theory prioritizing group goals over individual ones, emphasizing cooperation and team harmony.

Social Group

A collection of individuals who interact with each other, share similar characteristics, and collectively have a sense of unity or belonging.

Group Goals

Collective objectives or outcomes that a team or group aims to achieve through collaboration.

Dignity Cultures

Societies or communities that prioritize the inherent value and worth of each individual, advocating for respect and ethical treatment regardless of status or role.