An Externality Occurs When

question 78

Multiple Choice

An externality occurs when:

• A)people other than those making the demand and the supply decisions share the benefits or the costs of an activity.
• B)people enjoy the benefits of a good or a service without paying for it.
• C)the private cost of production equals the social cost associated with the production of a good.
• D)a firm is unable to lower its average cost of production by expanding its output level.
• E)the government intervenes in the production and the distribution of a good and does not allow the market forces to perform efficiently.

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Definitions:

African-Americans

A term used to refer to citizens or residents of the United States who have ancestry from any of the black populations of Africa.

Civil Rights Movement

A pivotal series of events and legislative changes, primarily during the 1950s and 1960s, aimed at ending racial segregation and discrimination against African Americans in the United States.

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A global conflict that lasted from 1939 to 1945, involving most of the world's nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.