Which of the Following Is an Example of an Externality

question 135

Multiple Choice

Which of the following is an example of an externality?

• A) Aaron purchases a new flat screen television.
• B) Bonnie cannot catch the flu from Bobby because Bobby got a flu vaccine.
• C) Clyde sells a book to Cathy.
• D) Doug turns up the heat in his apartment.

---

Definitions:

Daily Management

The continuous process of planning, monitoring, controlling, and adjusting day-to-day business operations and activities.

Taxed

Subjected to taxation by governmental authorities, relating to the imposition of financial charges on individuals or property.

Corporate Social Responsibility

Practices and policies undertaken by a company to have a positive influence on the world, beyond what is required by regulators or environmental protection groups.

Triple Bottom Line

A sustainability framework that evaluates a company's performance based on social, environmental, and financial criteria.