Pollution and Other Negative Externalities Arise Because

question 157

Multiple Choice

Pollution and other negative externalities arise because

• A)there are no enforceable property rights to open-access resources
• B)legislators cannot agree on what to do about them
• C)they are the price consumers are willing to pay for production of goods and services
• D)private property rights to pollute are controlled by businesses
• E)science cannot decide how to control them

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Definitions:

Long-term Incentives

Reward systems designed to improve employees' long-term performance by providing benefits such as stock options, restricted stock, and performance plans.

Prosperity

A state of economic wellbeing and flourishing, characterized by financial success or growth.

Financial Performance

An evaluation of a company's ability to utilize assets from its core business operations to produce income.

GAAP Net Income

The profit of a company computed based on Generally Accepted Accounting Principles, which includes all revenues, expenses, gains, and losses.