When Economic Activity Imposes Costs on Others Not Directly Involved

question 19

Multiple Choice

When economic activity imposes costs on others not directly involved in the transaction:

• A)a negative externality exists.
• B)a positive externality exists.
• C)then the market,will produce too little of the good.
• D)the tragedy of commons problem arises.
• E)a free rider problem arises.

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Definitions:

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Techniques and strategies aimed at controlling symptoms of anxiety, including cognitive-behavioral methods, relaxation techniques, and lifestyle adjustments.

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