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Which of the following is a key difference between the economic activities of government
and those of private firms?
A. Private firms face the constraint of scarcity; government does not.
B. Government focuses primarily on equity; private firms focus only on efficiency.
C. Private economic activities create externalities; government activities do not.
D. Government has the legal right to force people to do things; private firms do not.

Respuesta :

tutordamola

Answer:

The answer is C. Private economic activities create externalities; government activities do not

Explanation:

In economics, externality is a situation in which the actions or activities of an organization results to a cost or benefits borne by a third party e.g the community.

This activities mostly arose from company's production or consumption. There are positive and negative externality.

Example of negative externality is pollution

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