An Example of a Beneficial Externality Is

question 210

Multiple Choice

An example of a beneficial externality is

• A)a vaccination to prevent a communicable disease.
• B)loud music from a cool house party.
• C)a sandwich shop that adds a free pickle with each order.
• D)a pasture that all ranchers can freely graze their cattle on.

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Definitions:

Cost of Goods Sold

Costs incurred directly from the production process of goods a company offers for sale.

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

LIFO Reserve

The difference between the cost of inventory calculated using the Last-In, First-Out (LIFO) method and the cost calculated using the First-In, First-Out (FIFO) method.

FIFO Costing

First-In, First-Out, an inventory valuation method that assumes that the first items placed in inventory are the first sold.