Which of the Following Statements Is Correct

question 303

Multiple Choice

Which of the following statements is correct?

• A)The use of pollution permits and corrective taxes reduces the cost of environmental protection.
• B)Rich countries usually have cleaner environments than poor countries because a clean environment is like other normal goods in that it has a positive income elasticity.
• C)Clean water and clean air are goods to which the law of demand applies.
• D)All of the above are correct.

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Definitions:

Actual Overhead Costs

The real costs incurred from overhead activities, as opposed to budgeted or estimated overhead costs, including utilities, rent, and insurance.

Finished Goods

Items that are fully manufactured and available for sale to consumers.

Predetermined Overhead Rate

A projected cost per activity unit utilized for distributing manufacturing overhead expenses across products.

Inaccurate Estimates

Inaccurate Estimates refer to miscalculations or erroneous projections in financial forecasting, budgeting, or accounting, leading to discrepancies between expected and actual figures.