An external benefit is a benefit from a good or service that someone other than the ________ receives.
A) seller of the good or service
B) government
C) foreign sector
D) consumer
E) market maker

Question

Quizplus · Accepted Answer

The external benefit is received by someone other than the seller of the good or service, which rules out choices A and E. The government and foreign sector are not necessarily involved in every external benefit situation, so they can also be ruled out. The external benefit can be received by individuals or groups who are not directly involved in the transaction, making D the best choice.

An External Benefit Is a Benefit from a Good or Service