Externalities Exist Because

question 43

Multiple Choice

Externalities exist because

• A) owners of private property have an incentive to maintain their property.
• B) owners of private property have little incentive to protect their property.
• C) owners of private property are not able to trade with others.
• D) property rights are not clearly defined.
• E) there is too much private ownership of property.

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Definitions:

Long-term Debt

Loans or other forms of credit that are due for repayment in more than one year's time.

Long-term Debt

Borrowings of a company that are due for repayment more than one year into the future.

Current Liabilities

Financial obligations that a company is expected to settle within a year, including accounts payable, short-term loans, and accrued expenses.

Sales Revenue

Earnings a company secures through the sale of goods or services provided.