Which of the Following Is an Example of an Externality

question 496

Multiple Choice

Which of the following is an example of an externality?

• A)cigarette smoke that permeates an entire restaurant
• B)a flu shot that prevents a student from transmitting the virus to her roommate
• C)a beautiful flower garden outside of the local post office
• D)All of the above are correct.

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Definitions:

Budgeting

The process of creating a plan to spend your money, outlining future financial goals and how resources will be allocated to achieve them.

Lower Levels of Management

This refers to the operational level or first-line managers who directly manage non-management employees, focusing on daily operations and tasks.

Production Budget

An estimate of the total cost of production for a particular period, considering factors like raw materials, labor, and overhead expenses.

Merchandise Purchases Budget

A financial plan outlining the projected purchases of inventory needed to meet expected sales demand.