An Externality Exists When

question 44

Multiple Choice

An externality exists when

• A) goods are sold in specific geographic locations.
• B) some of the benefits or costs associated with a good are borne by third parties.
• C) the government taxes a good.
• D) the government subsidizes a good.

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Definitions:

Media

Media encompasses various communication outlets or tools utilized to store and deliver information or data, including newspapers, television, radio, and the internet.

Government

The system or group of people governing an organized community, often a state, and the authority to formulate public policies, laws, and regulations.

Business

The organized efforts and activities of individuals to produce and sell goods and services for profit.

Hot Button

A issue or topic that elicits strong emotional reactions, often leading to heated debates or discussions.