Which of the Following Is an Example of a Positive

question 537

Multiple Choice

Which of the following is an example of a positive externality?

• A)A college student buys a new car when she graduates.
• B)The mayor of a small town plants flowers in the city park.
• C)Local high school teachers have pizza delivered every Friday for lunch.
• D)An avid fisherman buys new fishing gear for his next fishing trip.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period of time, resulting in net profit or loss.

Proprietorship

A business owned and operated by a single individual, where there is no legal distinction between the owner and the business entity.

Owner's Equity Statement

A financial document that details changes in the equity of a business's owner(s) over a period of time.

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, culminating in the net income.