An Externality Is

question 442

Multiple Choice

An externality is

• A)the costs that parties incur in the process of agreeing and following through on a bargain.
• B)the uncompensated impact of one person's actions on the well-being of a bystander.
• C)the proposition that private parties can bargain without cost over the allocation of resources.
• D)a market equilibrium tax.

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Definitions:

Correlation With Causation

The mistaken assumption that a relationship between two variables (correlation) necessarily implies that one causes the other (causation).

Physics Exam

A Physics Exam is a formal assessment or evaluation of an individual's knowledge and understanding of the principles of physics.

Studying

The act of devoting time and attention to acquiring knowledge on an academic subject, especially through reading.

Correlation And Causation

The principle that a relationship between two variables does not automatically indicate that one causes the other.