An Externality Exists Whenever

question 370

Multiple Choice

An externality exists whenever

• A)the economy cannot benefit from government intervention.
• B)markets are not able to reach equilibrium.
• C)a firm sells its product in a foreign market.
• D)Bobbi engages in an activity that influences the well-being of Rosa and yet Bobbi neither pays nor receives payment for that influence.

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Definitions:

Altered Check

A check on which information has been modified or forged, such as the payee's name or the amount, without the account holder's authorization.

Ethos Art Gallery

Refers to a hypothetical or specific art gallery that presents and promotes artworks reflecting particular cultural values and ideals.

Notice of Dishonor

A formal notification given to parties involved that a negotiable instrument, like a check, has been dishonored or refused for payment.

Big Bank

A term often used to refer to the largest banks in a particular region or country, which have a significant impact on the overall banking and financial system.