An Externality Is the Effect That Occurs When the Production

question 184

True/False

An externality is the effect that occurs when the production or consumption of a good directly affects a third party.

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Definitions:

Technology

The application of scientific knowledge for practical purposes, especially in industry, where it encompasses processes, inventions, and methods to solve problems or improve existing solutions.

Functional Benefit

The practical or useful advantage offered by a product or service that satisfies specific needs of the consumer.

Societal Benefit

Advantages offered by a product, service, or organization that positively impact communities or society at large, not just individual consumers.

Perceptual Benefits

Advantages perceived by consumers, affecting their purchase decisions based on personal feelings or beliefs.