An Example of a Positive Externality Is

question 35

Multiple Choice

An example of a positive externality is:

• A)a rear-end spoiler feature on the back of sports cars that helps to stabilize and improve handling for the vehicle.
• B)legislation reducing air pollution.
• C)a chemical plant that emits thermal pollution.
• D)a chocolate factory whose aroma draws people to an area of the city that has a large quantity of tourist activities and shopping.

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Definitions:

Common-Size Statements

Financial statements that are expressed as a percentage of a certain figure, allowing for easier comparison across time periods and companies by standardizing the data.

Percentage Of Change

A mathematical calculation used to determine the percentage increase or decrease of a value over a period of time.

Quick Assets

Those assets— mainly cash, accounts receivable, and notes receivable—that can be easily turned into cash.

Current Liabilities

Obligations that will come due within one year or within the operating cycle, whichever is longer.