Since Air Pollution Creates a Negative Externality

question 64

Multiple Choice

Since air pollution creates a negative externality,

• A)social welfare will be enhanced when some, but not all air pollution is eliminated.
• B)social welfare is optimal when all air pollution is eliminated.
• C)governments should encourage private firms to consider only private costs.
• D)the free market result maximizes social welfare.

Understand the basic characteristics and classifications of liabilities.

Recognize the accounting treatment and reporting of current liabilities.

Comprehend the management of liabilities in terms of liquidity and profitability.

Apply correct journal entries for transactions involving liabilities.