The Cost of Negative Externalities That Harm the Environment,such as Pollution

question 133

Multiple Choice

The cost of negative externalities that harm the environment,such as pollution costs:

• A) negatively affect the level of GDP by the full amount of the damage.
• B) cause GDP to decline,but by only the cost of cleanup.
• C) cause GDP to underestimate true welfare in the economy.
• D) are not included in GDP.

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Definitions:

Extramarital Relationships

Romantic or sexual relationships that occur outside of one's marriage.

Markdown

A reduction from the original selling price of products or services, often used to clear inventory or boost sales.

Liquidity Reduction

A decrease in the ease with which assets can be converted into cash without significant loss in value.

Cost of Goods Sold

An accounting term representing the direct expenses related to producing or purchasing the goods sold by a company during a given period.