Negative Externality Occurs When

question 4

Multiple Choice

Negative externality occurs when

• A)the production of a good harms third parties.
• B)the production of a good helps third parties.
• C)a buyer is sold inferior and damaged merchandise.
• D)the consumption of a good helps third parties.

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Definitions:

Standard Error

A statistic that measures the accuracy with which a sample distribution represents a population by using the standard deviation.

Confidence Interval

An estimated range of values calculated from the statistics of observed data, indicating where a true parameter of a population is likely to exist with a specified level of certainty.

Sample

A subset of individuals or events from a larger population used to conduct statistical analysis.

Mean

The average value of a set of numbers, calculated by dividing the sum of all numbers in the set by the quantity of numbers.