Which of the Following Does NOT Provide a Positive Externality

question 62

Multiple Choice

Which of the following does NOT provide a positive externality?

• A) Actions that benefit others.
• B) The proliferation of Internet accounts.
• C) Airport and aircraft noise.
• D) Getting a flu vaccine.

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Definitions:

Real Interest Rate

The nominal interest rate adjusted for inflation, reflecting the true cost of borrowing and the true yield on savings.

Nominal Interest Rate

The stated interest rate of a loan or investment without adjusting for inflation, representing the surface level cost of borrowing or the raw return on an investment.

Rate of Inflation

The measure of how the general level of prices for goods and services is rising, and, subsequently, how purchasing power is falling over time.

Nominal Interest Rate

The interest rate before adjustments for inflation, representing the raw rate of interest paid on savings or charged on loans.