An Externality Is _____

question 164

Multiple Choice

An externality is _____

• A)a cost of a transaction that is borne by the government.
• B)a benefit of a transaction that is enjoyed by the firms.
• C)a cost or benefit that arises when market price changes.
• D)any cost or benefit of a transaction that is not accounted for in the market price.
• E)the revenue generated by a firm.

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Definitions:

Civil Law

A legal system that is based on written statutes and codes, as opposed to common law, which is based on judicial decisions and precedent.

Criminal Law

The body of law dealing with actions considered harmful or offensive against the public, society, or the state, subject to punishment such as imprisonment or fines.

Statute

A law that has been formally enacted by a federal or state legislative body.

Civil Action

A legal proceeding initiated by an individual or entity, typically for the resolution of a dispute involving private rights and remedies.