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Externalities exist when the actions of one agent Question 9 options:

A. benefit the agent committing the acts.
B. hurt the agent committing the action.
C. benefit or hurt another agent who is a part of the exchange relationship.
D. benefit or hurt another agent who is not part of the exchange relationship.

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Answer: D. benefit or hurt another agent who is not part of the exchange relationship.

Explanation: Externality is a benefit or hurt to another agent who is not part of the exchange relationship. It can be positive or negative.

Majorly it affects the people around who has nothing to do with the effect itself.

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