The Effect of an Externality Is That

question 38

Multiple Choice

The effect of an externality is that:

• A) Production of a public good equals market demand.
• B) Production of a private good equals market demand.
• C) True market demand for public goods may be determined by the number of consumers that pay for the goods.
• D) The producer of a public good has a limited incentive to produce it because all consumers cannot be charged for the good.

---

Definitions:

Vacancies

Unfilled positions or accommodations, often within the context of employment or housing.

Classism

Prejudice or discrimination based on social class, often manifesting in differential treatment or attitudes towards people from different economic backgrounds.

Single Mother

A woman raising her child or children without the presence or support of the other parent in the home.

Landlord

An individual or entity that owns and rents out real estate, such as apartments or houses, to tenants under agreed-upon terms.