Internalizing a Positive Externality Will Cause the Demand Curve to

question 85

Multiple Choice

Internalizing a positive externality will cause the demand curve to

• A)shift to the right.
• B)shift to the left.
• C)become more elastic.
• D)remain unchanged.

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Definitions:

Accounts Receivable

An asset account on the balance sheet that represents money owed to a company by customers for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

Liabilities to creditors that are to be paid within a short period of time, typically within one year.

Revenue

The whole sum of profit generated by a company through the selling of services or goods pertinent to its primary business functions.

Telephone Bill

A statement of charges for voice or data services provided by a telecommunications company.