When a Factory Pollutes a River,the Costs and Losses That

question 35

Multiple Choice

When a factory pollutes a river,the costs and losses that affect people downstream would be called

• A)indirect costs.
• B)external costs.
• C)incidental costs.
• D)internal costs.
• E)social costs.

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Definitions:

Midsize-Business

A company that occupies the middle ground in terms of its size and revenue, between small businesses and large corporations.

Registration Requirements

Legal or regulatory mandates that entities must fulfill to register a product, business, or activity with the relevant authorities.

Noninvestment Company

A company whose primary business involves activities other than investing, reinvesting, owning, holding, or trading in securities.

SEC Rule 10b-5

A rule of the Securities and Exchange Commission that prohibits the commission of fraud in connection with the purchase or sale of any security.