An Externality Exists When the Cost or Benefit Resulting from Some

question 169

True/False

An externality exists when the cost or benefit resulting from some activity or transaction is experienced by parties external to the activity or transaction.

---

Definitions:

Enforcing

The act of compelling compliance or obedience; ensuring that laws, rules, or orders are followed through appropriate actions or measures.

Social Security Benefits

Payments made from the government to eligible individuals, typically retirees or disabled workers, as part of a social insurance program.

Employers

Employers are individuals or businesses that hire and pay employees for services rendered, holding responsibility for providing a safe work environment and complying with labor laws.

Employees

Individuals who work for another person or for a company in return for financial or other compensation.