A Negative Externality Is Created If

question 51

Multiple Choice

A negative externality is created if

• A) An action harms someone not involved in the market transaction
• B) An action benefits someone not involved in the market transaction
• C) Neither helps nor hurts someone not involved in the market transaction
• D) An action benefits someone involved in the market transaction

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Definitions:

Relocated

Refers to something that has been moved to a new place or position.

Probability

A measure quantifying the likelihood that an event will occur, expressed as a number between 0 and 1.

Traffic Accidents

Incidents involving vehicles on public roads that result in damage, injuries, or fatalities.

Poisson Distributed

A statistical distribution showing the probable number of times an event will happen within a specified period, where events occur at a constant rate independently of each other.