Externalities are defined as
a. any transaction external to the firm
b. costs or benefits that fall on third parties
c. policies that firms undertake to sell products outside the country
d. managers' dealings with stockholders outside the firm
e. costs of maintaining plant and equipment to avoid the scrutiny of external auditors
Question 2
What is the rationale for government provision of education?
a. Not all incomes are equal, but everyone has the right to education regardless of wealth.
b. Potential students consider only their personal benefits gained from education, but the rest of society benefits, too.
c. No education would be provided in the absence of government provision because everyone would consume it without paying.
d. The cost of providing education for the entire public is too large.
e. The government can provide education at a much lower cost than the private sector.
External and cross-sectional view of an infarct caused by a myocardial infarction.
Location of internal and external hemorrhoids.
Development of the External Genitalia
This chart illustrates the four quadrants in which we can place the relationships between the state
Benefits of Regular Exercise
Firm handshake