A Negative Externality Occurs When the Purchase of a Product

question 69

Multiple Choice

A negative externality occurs when the purchase of a product

• A)causes the seller of the product to lose profits.
• B)increases market competition.
• C)causes the government to lose tax revenues.
• D)adversely affects the well-being of an individual outside of the market.
• E)causes a lower market price.

Understand the various components and purposes of financial and operating budgets.

Distinguish between different types of budgets within a master budget.

Calculate required units for production, direct materials, and labor based on budget information.

Identify the sequence of steps in developing a master budget.

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Definitions:

Commissioners

Individuals appointed to a commission, which is a governing body or group tasked with making decisions or overseeing a particular area of public concern.

Fair Debt Collection Practices Act

A federal law that limits the behavior and actions of third-party debt collectors attempting to collect debts on behalf of another person or entity.

Debt Collector

An individual or company that collects debts owed by consumers, often on behalf of a creditor.

Civil Penalty

A financial penalty imposed by a government agency as punishment for violating a civil law or regulation, distinct from criminal penalties.