Question:

Which of the following statements is true:?

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a. Externalities are the effect of a decision on a third party that is not taken into account by the decision-maker.

b. Negative externalities occur when the effect is beneficial to the third party.

c. Positive externalities occur when the effect is detrimental to the third party.

d. All of these statements are true.

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8 ANSWERS

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  1. a


  2. GOOGLE.COM :p

    j/k i wouldn't have a clue

  3. One (a), as that is the fact; the rest are opinions

  4. 24 xD

  5. a. is the true statement

    a negative externality is neither beneficial to the first, second, nor third party (keyword: negative)

    a positive externality is beneficial to the first party, and/or second and third. it is not detrimental to any party.

  6. b


  7. Huh?

  8. A is the correct answer
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