Which of the Following Is an Example of a Negative

question 123

Multiple Choice

Which of the following is an example of a negative externality?

• A) an increase in the value of land you own when a nearby development is completed
• B) the costs paid by a company to build an automated factory
• C) falling property values in a neighborhood where a disreputable nightclub is operating
• D) the higher price you pay when you buy a heavily advertised product

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Definitions:

Incremental Annual Revenues

The additional revenue generated from a specific action or decision, measured on an annual basis.

Scrap Value

The estimated resale value of an asset at the end of its useful life, typically associated with machinery, equipment, or vehicles.

Payback Period

The length of time required to recover the cost of an investment or project from its cash flows.

Initial Investment

The initial amount of money invested in a project or startup business.