Which of the Following Statements Is False

question 105

Multiple Choice

Which of the following statements is false?

• A)A positive externality is internalized if the person that generated the externality incorporates into his or her own private cost-benefit calculations the external benefits that third parties receive.
• B)Internalizing externalities is not the same as adjusting for externalities.
• C)An externality has been completely internalized if the socially optimal output emerges.
• D)Assigning property rights is one way to internalize externalities.

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Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Equipment Held

Assets in the form of machinery or other equipment that a company owns and uses in its operations.

Standby Purposes

Standby purposes involve situations where credit or resources are held in reserve to be utilized in specific circumstances or emergencies.

Actuarial Information

Data and analysis used to evaluate the financial implications of risk and uncertainty, often used in insurance and pensions.