Since Restored Historic Buildings Convey a Positive Externality, Local Governments

question 246

Multiple Choice

Since restored historic buildings convey a positive externality, local governments may choose to

• A)regulate the demolition of them.
• B)provide tax breaks to owners who restore them.
• C)increase property taxes in historic areas.
• D)Both a and b are correct.

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Definitions:

Fixed Costs

Expenses that do not vary with the level of production or sales over the short term.

Management by Exception

A management strategy where managers only intervene in decision making when performance deviates significantly from standards, allowing more focus on important issues.

Controllable

Refers to costs or elements within a business that can be directly managed, influenced, or altered by decisions of management.

Noncontrollable

Refers to expenses or influences that cannot be altered or changed by the management due to external constraints or fixed contract terms.