An Externality Is

question 442

Multiple Choice

An externality is

• A)the costs that parties incur in the process of agreeing and following through on a bargain.
• B)the uncompensated impact of one person's actions on the well-being of a bystander.
• C)the proposition that private parties can bargain without cost over the allocation of resources.
• D)a market equilibrium tax.

---

Definitions:

Obsessive Passion

A form of passion that entails an uncontrollable urge to engage in an activity, leading to negative consequences for other areas of life.

Goal-Setting

The process of identifying specific, measurable, attainable, relevant, and time-bound objectives to guide individual or group actions and behaviors.

Prototypical Leaders

Individuals who embody the typical characteristics or behaviors expected of leaders, often influencing their acceptance or effectiveness.

Non-Prototypical Leaders

Leaders who do not fit the traditional image or expectations of leadership within their context but still exercise influence and direction.