Which of the Following Would Be Classified as an Externality

question 12

Multiple Choice

Which of the following would be classified as an externality?

• A)Smoke from a chimney causes discolored and peeling paint on other houses in the neighborhood.
• B)Noise from an unmuffled car wakes a sleeping person.
• C)A neighbor cleans up a yard and repaints a house.
• D)All of the above are externalities.

Grasp the methodology and application of paired samples t-tests.

Comprehend the concepts of direction and strength in correlation analysis.

Learn how to interpret and calculate confidence intervals.

Identify the circumstances under which researchers reject the hypothesis based on confidence intervals.

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Definitions:

Compensating Balance

Compensating Balance is a minimum bank account balance that a borrower must maintain as part of a loan agreement, often used by banks as a requirement for extending a loan.

Interest Rate

The percentage of principal charged by the lender for the use of its money or the return earned on deposited funds.

Effective Interest Rate

The actual return on an investment, taking into account the effect of compounding interest.

Cash Cycle

The process that manages the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.