Read the Following Scenario and Answer the Question Below

question 34

Multiple Choice

Read the following scenario and answer the question below.
Thousands of young families moved ʺover the hillsʺ and into the San Fernando Valley, a suburb of Los Angeles, after World War II. New neighborhoods were springing up, replacing orange groves and open space; roads and schools quickly sprang into existence, trying to keep pace with the rapid population growth. Ringed by beautiful mountains, the entire Los Angeles basin looked like a new, green, sun-filled paradise to the families seeking a fresh start. In the early 1950s, one of the common family chores in Los Angeles was to carry the trash out to the stone incinerator behind the garage where each family burned all of their dry trash. ʺWetʺ garbage was collected and taken to a city dump, where it was burned by the city. Everyone throughout the city either used an incinerator or burned things in an open trash pile; there were over 400,000 backyard trash incinerators. On warm afternoons, eyes would sometimes sting and burn. People would stop, close their eyes, and let the cleansing tears refresh irritated eyes. They accepted this as a normal part of life in sunny California.
-One key to the puzzle of Los Angelesʹs smog is the fact that _________________

• A) Los Angeles and its suburbs are all ringed by mountains
• B) the Hadley cell for that area drops cool air, and pollution, right over Los Angeles
• C) the offshore breezes carry inland pollution to coastal Los Angeles
• D) incoming tides in the harbor push air pollution ahead of them
• E) there are so many rainy days, increasing the acidic deposition

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Definitions:

Future Cash Flows

Projected cash receipts and payments over a certain period, considered in investment analysis to determine an asset's present value.

S-corporation

A special type of corporation in the U.S. that allows profits, and some losses, to be passed directly to owners’ personal income without being subject to corporate tax rates.

Double Taxation

The levying of tax by two or more jurisdictions on the same declared income, asset, or financial transaction.

Financial Theory

The study of how individuals and corporations make investment decisions, and how these decisions affect financial markets and the overall economy.