Which of the following exists when one person's activity results in direct costs or benefits to someone who is not part of the marketplace decision to undertake the activity?
A)Externality
B)Specificity rule
C)Property rights
D)Marginal cost

Question

Quizplus · Accepted Answer

This situation describes an externality, where the activity of one person affects others who are not involved in the original decision-making process. The costs or benefits are external to the marketplace decision and can have unintended consequences. The specificity rule refers to the idea that contracts should be specific and clear, while property rights refer to the legal rights of ownership and control over resources. Marginal cost refers to the additional cost of producing one more unit of a good or service.

Which of the Following Exists When One Person's Activity Results