When One Person Uses a Common Resource, She Diminishes Other

question 43

Multiple Choice

When one person uses a common resource, she diminishes other people's enjoyment of it.This is an example of:

• A)a market force
• B)a negative externality
• C)the 'invisible hand
• D)excludability

---

Definitions:

Operating Segment

A distinct component of a business engaged in activities generating revenues and incurring expenses, whose results are regularly reviewed by the entity's chief operating decision maker.

Revenue Test

A criterion used to evaluate whether an entity's revenue level meets specific thresholds for financial reporting or regulatory compliance purposes.

Operating Segments

Denotes the distinct revenue-producing components of an enterprise, which engage in business activities from which they may earn revenues and incur expenses.

Reportable

Referring to information or events that must be disclosed or reported according to regulatory, legal, or professional requirements.