Which of the Following Is an Example of Externalities

question 102

Multiple Choice

Which of the following is an example of externalities?

• A)There are not enough tickets available to concerts of extremely popular performers.
• B)The price of medical care has risen dramatically as a result of the introduction of sophisticated equipment and techniques.
• C)Polio shots and chest x-rays provide widespread benefits to the community as a whole as well as to the individuals who get them.
• D)Extensive decreases in the prices of electronic equipment resulted in large numbers of bankruptcies in the computer industry.

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Definitions:

Selling And Administrative Budget

Forecasts expected expenses related to selling the product and managing the business, excluding manufacturing costs.

Cash Budget

A financial plan that estimates cash inflows and outflows over a particular period, often used to assess whether the entity can maintain its operations and obligations.

Units Produced

The total number of finished products that a company manufactures during a specific period.

Ending Inventory

The total value of all unsold goods held by a company at the end of an accounting period.