Externalities Can Be Positive Because

question 18

Multiple Choice

Externalities can be positive because

• A)welfare can be impacted positively as well as negatively.
• B)there is no concept for marginal benefit.
• C)positive externalities are subsidies.
• D)marginal damages do not last over time.

---

Definitions:

Subsidiary Ledger

A detailed ledger that contains the accounts of specific areas of business, supporting data for accounts in the general ledger.

Accounts Receivable

Financial obligations of customers towards a business for delivered products or services awaiting payment.

Discount Period

The time frame within which a payment can be made at a reduced rate.

Asset Account

An account on a balance sheet representing resources owned by a company that have economic value.