Why Do Externalities Arise

question 90

Multiple Choice

Why do externalities arise?

• A)The costs of production are not borne by the producer
• B)An economic activity imposes a burden on them who are not directly involved in it
• C)An economic activity imposes a cost on them who are directly involved in it
• D)The government produces such goods and services which are consumed by only a particular class of people
• E)Goods of mass consumption are not produced as they do not yield profit for the producers

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Definitions:

Purpose Of The Assessment

The specific objective or reason for conducting an evaluation or measurement, which guides the selection of assessment tools and interpretation of results.

Concurrent Validity

The extent to which test scores correlate with scores from another valid measure taken at the same time.

Criterion-Related Validity

A measure of how well one variable or test predicts an outcome based on information from other variables.

Reliability

The degree to which an assessment tool produces stable and consistent results over time.