Which of the Following Would Be Classified as an Externality

question 12

Multiple Choice

Which of the following would be classified as an externality?

• A)Smoke from a chimney causes discolored and peeling paint on other houses in the neighborhood.
• B)Noise from an unmuffled car wakes a sleeping person.
• C)A neighbor cleans up a yard and repaints a house.
• D)All of the above are externalities.

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Definitions:

Significance Level

A threshold in statistical hypothesis testing, often denoted by alpha, that determines the probability of rejecting a true null hypothesis.

Life Insurance

A contract between an individual and an insurance company, providing a financial payment to designated beneficiaries upon the individual's death.

Significance Level

The threshold below which a p-value indicates that the observed data are sufficiently unlikely under the null hypothesis, leading to a rejection of the null hypothesis.

College Students

Individuals enrolled in an institution of higher education.