The Unintentional Impact That the Actions of an Individual Can

question 32

Multiple Choice

The unintentional impact that the actions of an individual can have on others is called:

• A) an externality.
• B) a public good.
• C) a network effect.
• D) the free-rider problem.

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Definitions:

Private Consumption

Expenditure by households on goods and services, excluding purchases of residences.

Government Spending

Expenses incurred by the government to provide goods and services, invest in public projects, and support economic stability and growth.

Private Consumption

Expenditures by individual households or residents of a country on goods and services, not including purchases for business or investment purposes.

Gross Investment

The total amount of money spent on capital projects before deducting depreciation or other allowances for the wearing out of assets.