In General,an Externality Is Created When

question 93

Multiple Choice

In general,an externality is created when

• A)people are affected (other than by price)by a transaction which they were not part of.
• B)firms produce a product of low quality and consumers don't like it.
• C)firms have to pay for pollution the environment.
• D)the government subsidizes education.

---

Definitions:

Reactant Formation

The process in a chemical reaction where substances (reactants) combine or change to produce new substances (products).

Equilibrium

A state of physical balance or stability, or the condition in which all competing influences are balanced in a chemical reaction or in a market.

Kinetic Energy

Motion energy or energy that can do work.

Potential Energy

Energy in a chemical bond that is not being exerted or used to do work.