Externalities Occur When the Actions of One Individual Affect Another

question 17

True/False

Externalities occur when the actions of one individual affect another individual's well-being,and the relevant costs are reflected in market prices.

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Definitions:

Behavior

The actions or reactions of an individual, group, or system in response to external or internal stimuli.

Zero Slope

A line with zero slope remains constant and horizontal, indicating no change in the dependent variable, regardless of changes in the independent variable.

Curve

In economics, it usually refers to a graphical representation of the relationship between two factors, such as supply and demand, price and quantity, etc.

Line

A straight geometrical figure that extends infinitely in both directions without thickness.