Which of the Following Is the Main Reason for Externalities

question 156

Multiple Choice

Which of the following is the main reason for externalities?

• A) The full cost of a transaction is not borne by the buyer/seller of the product.
• B) Police enforcement of scalping is not uniformly enforced.
• C) the lack of organized exchanges for all goods and services
• D) The production of public goods uses up scarce resources.

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership with the limited liability of a corporation.

LLC

Limited Liability Company; a business structure allowing owners to benefit from the advantages of both the corporation and partnership forms of business.

General Partner's Liability

describes the legal responsibility of general partners in a partnership to bear unlimited personal liability for the debts and obligations of the partnership.

Limited Partnership

A business arrangement with at least one general partner managing the business and responsible for its debts, and one or more limited partners whose liability is restricted to their investment.