Which of the Following Activities, If Any, Represents an External

question 71

Multiple Choice

Which of the following activities, if any, represents an external benefit?

• A)The benefit to a consumer from consuming a Caesar salad.
• B)The damage to a person's health from secondhand smoke.
• C)The reduction in tourist revenues at a beach resort caused by an oil spill.
• D)The reduction in property values caused by the construction of a bar next to your home.
• E)None of the above

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Definitions:

Economic Analysis

The systematic examination of economic data, policies, or conditions to understand or predict economic performance and outcomes.

Public Choice Theory

A field of economics that studies how economic decisions and policies are influenced by the behavior and incentives of individuals and institutions within the public sector.

Legislation

The process of making or enacting laws by a governing body or legislative authority.

Voting Patterns

Refers to the trends and tendencies in how different groups of people vote in elections, influenced by factors such as demographics, socioeconomic status, and political beliefs.