Externalities Are

question 156

Multiple Choice

Externalities are:

• A) always good.
• B) always bad.
• C) sometimes good and sometimes bad.
• D) neither good nor bad.

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Definitions:

Lagging Indicator

A measurable economic factor that changes only after the economy has begun to follow a particular pattern or trend.

Leading Indicator

Economic factors that change before the economy starts to follow a particular pattern or trend, used to predict future economic activity.

Corporate Social Responsibility Objective

A self-regulated business model that helps a company be socially accountable—to itself, its stakeholders, and the public.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.