Which of the Following Scenarios Is an Example of a Proactive

question 4

Multiple Choice

Which of the following scenarios is an example of a proactive approach?

• A)A paint company allocates funds for research on eco-friendly paints to promote environmental well-being.
• B)A chemical plant meets the minimum safety requirements dictated by legislations.
• C)A metal processing industry deposits all the scrap metal on a nearby empty land.
• D)A restaurant using biodegradable food packaging on the insistence of its customers who are willing to pay an extra amount.

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Definitions:

Externality Problem

A situation where the actions of individuals or firms result in costs or benefits to others that are not reflected in the market prices.

Subsidy

A financial contribution provided by government to reduce the cost of producing goods or services and support businesses or consumers.

External Costs

Costs of an economic activity that are not borne by the parties directly involved in the transaction but by other individuals or society at large.

Supply Curve

A graph that represents the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.