When There Is a Cost or Benefit That Affects Someone

question 321

Multiple Choice

When there is a cost or benefit that affects someone other than the seller and buyer,then there is

• A) a tax.
• B) a subsidy.
• C) a quantity regulation.
• D) a price regulation.
• E) an externality.

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Definitions:

Density

The mass per unit volume of a substance, often used as an identifying property of various materials.

Mass

A measure of the amount of matter that an object contains; also a fundamental property of an object that determines its inertia and gravitational interaction.

Liquid

A state of matter characterized by a definite volume but no definite shape, allowing it to flow freely.

Density

The mass of a substance per unit volume, used as a measure of how tightly matter is compacted.