A "Product" Might Involve a Physical Good, a Service, or a Combination

question 268

True/False

A "Product" might involve a physical good, a service, or a combination of the two.

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Definitions:

External Costs

Costs that are not borne by the parties involved in an economic transaction but by other individuals or society at large.

Auto Pollution

Auto pollution refers to the emissions generated by motor vehicles that contribute to air pollution.

Equilibrium Price

Equilibrium price is the price at which the quantity of a good demanded equals the quantity supplied, thus no surplus or shortage exists.

Adverse Selection

A situation in which sellers have information that buyers do not (or vice versa) leading to transactions that favor the party with more information.