Externalities Can Be Corrected by Each of the Following Except

question 100

Multiple Choice

Externalities can be corrected by each of the following except

• A)self-interest.
• B)moral codes and social sanctions.
• C)charity.
• D)normal market adjustments.

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Definitions:

Interest Rates

The amount charged by lenders as a percentage of the amount borrowed, representing the cost of borrowing money.

Yields To Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.

Par Value

The face value of a bond or stock as stated on the certificate or instrument, not necessarily its market value.

Mature

Refers to when a bond reaches its expiry date-payback or when a market or company has reached a state of equilibrium with little growth.