When Do Externalities Arise

question 79

Multiple Choice

When do externalities arise?

• A)When the explicit costs of producing a good or service are not borne by the producer
• B)When an economic activity imposes a burden on them who are not directly involved in it
• C)When the government produces such goods and services which are consumed by only a particular class of people
• D)When goods of mass consumption are not produced as they do not yield profit for the producers

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Definitions:

Storehouse

Storehouse traditionally refers to a large building where goods are stored, but metaphorically it can describe anything that serves as a repository for large quantities of information or resources.

Memory System

The complex processes and structures within the brain responsible for encoding, storing, and retrieving information.

Sensory Memory

The shortest-term element of memory, which acts as a buffer for stimuli received through the senses and holds information in its original sensory form for a very brief duration.

Short-Term Memory

A cognitive system with a limited capacity that is responsible for the temporary holding of information available for processing.