An Externality Is

question 10

Multiple Choice

An externality is:

• A)an activity that imposes involuntary costs or benefits on others, or an activity whose effects are not completely reflected in its market price.
• B)an activity that does not impose involuntary costs or benefits on other, or an activity whose effects are completely reflected in its market price.
• C)is not a consideration in economics.
• D)none of the above.

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Definitions:

Logistic Regression

A statistical method used for predicting the outcome of a binary variable based on one or more predictor variables.

Probability

The probability of an event happening.

Success

The accomplishment of an aim or purpose.

Prediction Interval

A range of values that estimates where future observations will fall, with a specified probability.