An Externality

question 258

Multiple Choice

An externality

• A)results in an equilibrium that does not maximize the total benefits to society.
• B)causes demand to exceed supply.
• C)strengthens the role of the "invisible hand" in the marketplace.
• D)affects buyers but not sellers.

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Definitions:

Degrees of Freedom

The number of values in a final calculation of a statistic that are free to vary.

Number of Treatments (k)

In statistical experiments, refers to the different categories or treatments under consideration.

Number of Observations (n)

The total count of data points or elements in a statistical sample or experimental study.

F-distribution

A probability distribution used mainly in analysis of variance (ANOVA), especially for comparing group variances.