A Large Factory Pours Its Toxic Wastewater into a Nearby

question 201

Multiple Choice

A large factory pours its toxic wastewater into a nearby river, and as a result, the residents of a downstream community experience high rates of illness and birth defects.The economic problem illustrated by this example is

• A)marginal thinking.
• B)comparative advantage.
• C)repealing the laws of supply and demand.
• D)externalities.
• E)productivity growth.

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Definitions:

Shares Outstanding

The total number of shares of a corporation that are currently owned by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.

Tender Offer

An offer made directly to shareholders, proposing to purchase their shares at a specified price above market value.

Share Repurchase Program

A plan initiated by a company to buy back its own shares from the marketplace, often to reduce the supply of shares available and thus increase the value of remaining shares.

Open Market

An economic system in which prices for goods and services are determined by unrestricted competition between privately owned businesses.