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Market Activities That Affect Third-Parties

Question 64

Multiple Choice

Market activities that affect third-parties:


A) occur when a market activity leads to a negative externality.
B) occur when a market activity leads to a positive externality.
C) occur when a market activity leads to a negative or a positive externality.
D) are the same as the free-rider problem.
E) are associated with the production of private goods but not public goods.

Correct Answer:

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