A Tradeoff Exists Between a Clean Environment and a Higher

question 109

Multiple Choice

A tradeoff exists between a clean environment and a higher level of income in that

• A)studies show that individuals with higher levels of income pollute less than low-income individuals.
• B)efforts to reduce pollution typically are not completely successful.
• C)laws that reduce pollution raise costs of production and reduce incomes.
• D)employing individuals to clean up pollution causes increases in employment and income.

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Definitions:

Voting Stock

Shares that grant the shareholder voting rights in corporate decisions, typically involving the election of the board of directors.

Interest Revenue

Income earned from investments, loans, or other earning assets that yield interest over time.

Cash Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits in the form of cash.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies by reporting these profits as income.