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- Introduction To Economicseconomics-mcqs › introduction-to-economics
- Published
- 26 May 2019
- Last updated
- 28 May 2026
Which scenario is most likely to generate an externality?
Multiple choice question for Introduction To Economics. Select an option, then review the explanation below.
Explanation
An externality occurs when an individual's actions affect others who are not involved in the activity. Eating a burger, reading, or watching TV are generally private activities with no impact on others. However, hosting a party in a dorm room can create noise or disturbances, affecting neighbors and thus producing an externality.
More Introduction To Economics MCQs
Practice related questions from the same subject.
- 1.Which of the following factors directly influences the supply curve?
- 2.Under what condition is a market considered to be in equilibrium?
- 3.What type of relationship is depicted when a graph shows that as the values on the horizontal axis increase, the values on the vertical axis decrease?
- 4.Which two elements are essential to construct a straight-line graph?
- 5.How can a nominal value be converted into a real value?