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What Is the Difference Between a Positive Externality and a Negative

Question 18

Multiple Choice

What is the difference between a positive externality and a negative externality?


A) Whether bystanders have a direct or inverse relationship to the decision maker.
B) Whether the price rises or falls.
C) Whether the perspective is the buyer's or the seller's.
D) Whether the welfare of bystanders rises or falls.

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