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:

Normally Distributed

A statistical term describing data that follows a bell curve pattern, where most occurrences take place around the mean value.

Confidence Interval

A statistical range, with a given probability, that is likely to contain the true value of an unknown parameter.

Small-Company Stocks

Shares of ownership in small-cap companies, often carrying higher risk but potentially offering higher returns compared to shares of larger corporations.

Capital Gains Yield

The change in price of a security over time, expressed as a percentage.