Refer to the Following Graphs.Which Graph(s)represent(s)an Externality

question 14

Multiple Choice

Refer to the following graphs.Which graph(s) represent(s) an externality?

• A)graph A
• B)graphs A and B
• C)graph B
• D)neither graph A nor graph B

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Definitions:

Net Exports

The value of a country's total exports minus the value of its total imports, representing the net trade balance.

GDP

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country’s borders.

Investment

The expenditure on capital goods including buildings, machinery, and equipment, intended to enhance future production or yield future returns.

Net Exports

The difference between a country's total value of exports and its total value of imports over a specific time period.