Author Question: Externalities are the unintended negative (or in some cases positive) consequences that an economic ... (Read 126 times)

Zulu123 · **on:** Jun 19, 2018

Externalities are the unintended negative (or in some cases positive) consequences that an economic transaction
between two parties can have on some third party.

a. True
b. False

Question 2

According to Keith Davis, in addition to considering potential profitability, a business must weigh the long-range
social costs of its activities as well. Only if the overall benefit to society is positive should business act.

a. True
b. False