If an Externality Is Created by a Single Person or Firm,and

question 71

Multiple Choice

If an externality is created by a single person or firm,and affects only a single person or firm,then

• A)it is referred to as a single externality
• B)the inefficiency caused by that externality may be resolved by those two parties
• C)the externality takes the form of a side payment
• D)Pareto efficiency is guaranteed
• E)fairness dictates that the externality be removed

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Definitions:

Membranes

Thin layers of tissue that cover surfaces, lines cavities, and separates or connects spaces or organs in a living organism.

Compartments

Distinct sections within spaces or structures, typically used to separate or organize different functions or components.

Membrane Potential

The electrical potential difference across a cell's plasma membrane, caused by the differential distribution of ions, crucial for functions such as nerve impulse transmission.

Sodium-potassium Pumps

Biological mechanism involving the active transport of sodium and potassium ions across cell membranes, essential for various cellular processes.