Which of the Following Is True of Externalities

question 39

Multiple Choice

Which of the following is true of externalities?

• A) All externalities are negative in nature.
• B) They are only borne by individuals responsible for creating them.
• C) Technological innovation results in complete eradication of negative externalities.
• D) Externalities can be in the form of benefits reaped by individuals.

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Definitions:

U.S.

Refers to the United States of America, a country primarily located in North America, comprising 50 states, a federal district, five major self-governing territories, and various possessions.

Restaurant Chain

A set of related restaurants in different locations that are either under shared corporate ownership or franchising agreements.

Domestic Investment

The total spending on capital goods within a country’s borders, which includes expenditures on new buildings, equipment, and technology.

Trade Deficit

An economic measure of a negative balance of trade where a country's imports exceed its exports.