McqMate
Q. |
Externality theory is the basic theory of the following branch of Economics: |
A. | Environomics |
B. | Fiscal Economics |
C. | International Economics |
D. | Macro Economics |
Answer» A. Environomics | |
Explanation: In economics, an externality is a cost or benefit which results from an activity or transaction and which affects an otherwise uninvolved party who did not choose to incur that cost or benefit. Environmental pollution is a classic case of an externality. Externality theory forms the basic theory of environmental economics. |
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