Which of the Following Is an Example of an Externality

question 63

Multiple Choice

Which of the following is an example of an externality?

• A)Annie purchases a new dress.
• B)Antonio's dog barks loudly during the night,waking his neighbors.
• C)Harold sells a book to Cathy,who reads the book and then gives it to James as a gift.
• D)Gloria watches a scary movie.

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Definitions:

Inventory Holding Cost

Expenses associated with storing unsold goods, including warehousing, insurance, taxes, depreciation, and opportunity costs of capital tied up in inventory.

Marginal Subcontracting Cost

The extra expense associated with outsourcing an additional unit of production or service.

Layoff Cost

The financial impact associated with the termination of employees traditionally as a result of downsizing, restructuring, or automation.

Hiring And Training Cost

Expenses incurred in recruiting, hiring, and training new employees.