An Externality Exists Whenever

question 370

Multiple Choice

An externality exists whenever

• A)the economy cannot benefit from government intervention.
• B)markets are not able to reach equilibrium.
• C)a firm sells its product in a foreign market.
• D)Bobbi engages in an activity that influences the well-being of Rosa and yet Bobbi neither pays nor receives payment for that influence.

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Definitions:

Unique

Being the only one of its kind; unlike anything else.

Discretionary Resources

Assets or funds over which an individual or organization has the freedom to decide their use without strict limitations.

Knowledge Management

The process of creating, sharing, using, and managing the knowledge and information of an organization.

Adaptation

The process by which individuals, species, or groups adjust to changes in their environment, enhancing their survival and functionality.