Which of the Following Expenditures to Enhance Productivity Is Most

question 24

Multiple Choice

Which of the following expenditures to enhance productivity is most likely to convey a positive externality?

• A)FNB buys a new computer.
• B)Lebo pays her university tuition fees.
• C)SASOL leases a new oil field.
• D)General Motors buys a new drill press.

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Definitions:

Taxation Theory

The study of how taxes affect the economy, focusing on the optimal design of tax policies to achieve various economic objectives.

Net Worth

The total value of all assets owned by an individual or organization minus any liabilities or debts.

Assets

Economic resources owned or controlled by an individual or a business, which are expected to provide future benefits.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.