An unintended byproduct of a market exchange that is allocated outside the market system is _____.
A)a restrictive covenant
B)an externality
C)a pollution right
D)an external damage

Question

Quizplus · Accepted Answer

An externality is an unintended consequence of a market exchange and may have positive or negative effects. It is allocated outside the market system because it affects individuals or groups not directly involved in the exchange. The other options (restrictive covenant, pollution right, external damage) do not necessarily involve market exchanges.

An Unintended Byproduct of a Market Exchange That Is Allocated