A Benefit That Accrues Without Compensation to Someone Other Than

question 50

Multiple Choice

A benefit that accrues without compensation to someone other than the person who caused it is called:

• A) an external benefit.
• B) a network benefit.
• C) a social benefit.
• D) a private benefit.

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Definitions:

Inelastic Good

A product or service whose demand does not significantly change with a change in its price, indicating consumers' necessity or lack of substitutes.

Gasoline Expenditures

The total amount of money spent by consumers on gasoline, encompassing both retail purchases for vehicles and other uses.

Public Transportation

A system of vehicles such as buses, trains, and subways, provided by the government or private companies, for the purpose of transporting large numbers of people.

Cross-price Elasticity

Measures the responsiveness of the demand for one good to a change in the price of another good.