A Negative Externality

question 55

Multiple Choice

A negative externality:

• A) is a payment received to parties not involved in the production or consumption of a good.
• B) is a cost borne by parties not involved in the production or consumption of a good.
• C) results from the absence of well-defined property rights.
• D) is a cost borne by parties not involved in the production or consumption of a good and results from the absence of well-defined property rights.

---

Definitions:

Mary Whiton Calkins

An early American psychologist who became the first woman to serve as President of the American Psychological Association.

Innate Ability

Natural skills or talents that an individual is born with, not acquired or learned through experience.

Learned Skill

A capability acquired or developed through practice, training, or experience.

Nature

The inherent qualities or characteristics of an organism, or the physical world collectively, including plants, animals, the landscape, and other features and products of the earth.