Where Pollution Is Concerned, If an Automobile Driver Considers Only

question 231

Multiple Choice

Where pollution is concerned, if an automobile driver considers only the internal costs of his actions, he is apt to

• A) use resources very carefully and in small quantities.
• B) garage his car and drive very seldom.
• C) be making a positive contribution to the greater community.
• D) drive too much and use up more scarce resources than he would if he had to cover all his costs.

---

Definitions:

Target Costing

A pricing method that involves subtracting a desired profit margin from a competitive market price to determine the maximum cost of production.

Return on Investment

A financial metric evaluating the profitability or effectiveness of an investment, calculated by dividing net profit by the investment's cost.

Common Fixed Costs

Costs that do not change with the level of production or sales and are shared across different products or departments within a company.

Decision Making

The process of choosing among alternative courses of action or solutions to a problem in order to achieve a desired outcome.