Externalities Are

question 102

Multiple Choice

Externalities are:

• A)external forces that help establish equilibrium price
• B)external forces that cause the price of a good to be higher than it otherwise would be
• C)side effects of government intervention in markets
• D)side effects passed on to a party other than the buyers and sellers in the market

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Definitions:

Unauthorized Act

An action taken without official permission, potentially violating legal or organizational rules.

Principal

In agency law, the individual or entity that authorizes an agent to act on their behalf in business transactions.

Agent

An individual or entity authorized to act on behalf of another person or entity in legal or business matters.

Defraud

The act of misleading or deceiving someone typically for financial or personal gain.