Pollution Is an Externality, This Means

question 79

Multiple Choice

Pollution is an externality, this means

• A)the free market allows households and firms to consume a minimal amount of clean air.
• B)it is in the public interest to reduce pollution levels to zero.
• C)individuals and firms consume "free" air wastefully.
• D)the pricing system sets clean air at a high price.

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Definitions:

Retired Bonds

Bonds that have been repaid in full before or at maturity, thus removing the issuer's obligation to the holders.

Above the Cost

A situation where the selling price or market value of an asset exceeds its original purchase cost or production cost.

Bond Sinking Fund

A fund established by a bond issuer into which money is set aside over time, intended to be used to repay the principal amount of the bond at maturity.

Long-Term Investment

An investment held for an extended period, typically more than a year, to earn interest, dividends, or capital gains.