Use the following statements to answer this question:
I. Stock externalities depend on the accumulated results of actions by producers or consumers, not on the incremental results that may occur in a given period of time.
II. Stock externalities are always negative externalities.
A) I and II are true.
B) I is true and II is false.
C) II is true and I is false.
D) I and II is false.

Question

Quizplus · Accepted Answer

Statement I is true because stock externalities are the result of cumulative actions over time. Statement II is false because stock externalities can be positive or negative. For example, the accumulation of trees in a forest can have positive externalities such as providing oxygen and reducing carbon dioxide levels.

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