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Commerce · Q505

Financial Management

Graduate and Post Graduate · Commerce · question 505

Q505

Economists consider effects of started project on other parts of company or on environment of company is called

A.
externalities
Answer
B.
foreign effects
C.
weighted effects
D.
opportunity effects

Answer: Option A

Solution

Answer: Option A
Solution:
Economists consider effects of started project on other parts of company or on environment of company is called externalities. An externality is an economic term referring to a cost or benefit incurred or received by a third party. However, the third party has no control over the creation of that cost or benefit. An externality can be both positive or negative and can stem from either the production or consumption of a good or service.