A Negative Externality

question 183

Multiple Choice

A negative externality:

• A)is any cost above the economic cost.
• B)equals the social cost plus the firm's private cost.
• C)is an uncompensated cost imposed by an individual or firm on others.
• D)equals the opportunity cost minus the social costs.

---

Definitions:

Uniform Commercial Code

A complete collection of regulations that oversee every business transaction within the United States.

Electronic Banking

The conduct of banking activities through electronic means, including online banking, ATMs, and electronic payments.

Drawer

In the context of banking and finance, the person who writes or issues a check or draft instructing the drawee to pay someone else.

Drawee

The party in a transaction upon whom a check, draft, or bill of exchange is drawn and is responsible for its settlement.