A Motorist with a Noisy Muffler Will Continue to Drive

question 171

Multiple Choice

A motorist with a noisy muffler will continue to drive around town,creating noise pollution wherever he goes,as long as

• A) the cost to him is less than the benefit he derives from it.
• B) there is no cost to the other people in the town.
• C) there is an economic benefit to the society.
• D) there are by-laws against noise pollution.
• E) he considers the noise a positive externality.

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Definitions:

FOB Shipping Point

A term that indicates the buyer is responsible for goods once they leave the seller's premises, including paying shipping costs and bearing the risk of loss in transit.

Record Revenue

The act of documenting the income earned by a company from its business activities during a specific period, following accounting principles.

Gross Margin Ratio

A financial metric that measures the difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Net Sales

The residual income from sales once deductions for returns, allowances for impaired or absent merchandise, and markdowns are made.