When It Comes to Pollution, Economists Believe That the Government

question 64

Multiple Choice

When it comes to pollution, economists believe that the government must:

• A) allow pollution to exist unabated.
• B) allow firms to pollute as long as the benefits of pollution is positive.
• C) allow firms to pollute as long as they bear the full cost of their pollution.
• D) never allow pollution to exist.

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing ownership interest held by shareholders.

Available-for-sale Securities

Financial assets that are neither classified as held-to-maturity nor trading securities, and can be sold in the short-term depending on financial needs or market conditions.

Income Statement

A report detailing a business's income and outgoings within a set timeframe, resulting in either a net gain or deficit.

Recognized

Accounting term referring to the formal acknowledgment in financial statements of income earned or expenses incurred.