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Externalities Can Occur as a Result of Either Production or Consumption

question 28

True/False

Externalities can occur as a result of either production or consumption activities.


Definitions:

Equilibrium Wage

The salary rate where the volume of labor provided is equal to the volume of labor needed.

Haircut Market

Refers to the market for hair styling and cutting services; often used to exemplify basic economic principles like supply, demand, and market equilibrium in a tangible context.

Labor-Market Discrimination

The unequal treatment of job applicants or workers based on race, gender, age, or other irrelevant characteristics which affects their opportunities and wages.

Wage Increase

An increase in the rate of pay for workers, which can occur due to economic growth, inflation, or increased demand for labor.

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