Pollution Imposes a Cost in the Economic Sense If It

question 113

Multiple Choice

Pollution imposes a cost in the economic sense if it damages plants or animals:

• A) valued by people.
• B) owned by business firms.
• C) considered endangered.
• D) that live in close proximity to people.

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Definitions:

Cash Basis

An accounting method where revenue and expenses are recorded only when cash is received or paid, respectively.

Pay Back

Refers to the time period required for an investment to generate cash flows or profits to cover its initial cost.

Accounting Break-even

The point at which total costs match total revenues, indicating that a business is neither making a profit nor a loss.

Net Present Value

The variance between the current worth of cash inflows and the current worth of cash outflows over a specific duration, employed to evaluate the profitability of an investment.