Negative Externalities Occur When One Person's Actions

question 217

Multiple Choice

Negative externalities occur when one person's actions

• A)cause another person to lose money in a stock market transaction.
• B)cause his or her employer to lose business.
• C)reveal his or her preference for foreign-produced goods.
• D)adversely affect the well-being of a bystander who is not a party to the action.

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Definitions:

Disaffirm

To express denial or contradiction of a previous statement, belief, or agreement.

Minor Contracts

Agreements entered into by individuals under the age of legal majority, which are often voidable at the discretion of the minor.

Pre-Injury Waiver

A pre-injury waiver is a legal agreement where a participant in an activity agrees to waive their right to sue the provider for any injuries that might occur, effectively absolving the provider of liability.

Summary Judgment

A legal determination made by a court without a full trial, granted when one party's evidence clearly shows there is no factual dispute, thereby avoiding the need for a trial.