All Externalities

question 67

Multiple Choice

All externalities:

• A) are harmful to society and create costs external to the decision maker.
• B) are beneficial to society and create benefits external to the decision maker.
• C) create either a cost or benefit to a person other than the person who caused it.
• D) are addressed by the government through taxation.

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Definitions:

Manufacturer's Branch

A local office or division of a manufacturing company responsible for distributing its products in a specific geographical area.

Wholesaling Activities

Encompasses the operations involved in selling goods or merchandise to retailers, other merchants, or industrial, commercial, and institutional users, but not to consumers directly.

Producer

An entity or individual that creates goods or services, ranging from physical products to digital or intellectual properties.

Conventional Brokers

Intermediaries that facilitate transactions between buyers and sellers within traditional markets.