Multiple Choice
An externality is
A) a cost of a transaction that is borne by a third party
B) a benefit of a transaction that is enjoyed by a third party
C) a cost or benefit that arises when market price changes
D) any cost or benefit of a transaction that is not accounted for in the market price
E) the external revenue generated by a firm
Correct Answer:
Verified
Correct Answer:
Verified
Q38: When consuming a good creates positive externalities,<br>A)private
Q39: When society receives more benefits from a
Q40: The socially optimal amount of pollution abatement
Q41: Renewable resources are those for which<br>A)additional units
Q42: Private markets can allocate resources optimally<br>A)under all
Q44: In the U.S., people tend to discard
Q45: Depletion of tropical rainforests is an example
Q46: As more pollution is abated, the total
Q47: When consumption of a good creates positive
Q48: The optimal level of pollution occurs where