Requiring Deposits on Soft Drink Containers Is an Example of Using

question 32

Multiple Choice

Requiring deposits on soft drink containers is an example of using the price system to eliminate an external diseconomy because

• A) consumers prefer throwaway cans.
• B) it shifts pollution costs from individuals to society.
• C) it makes the drinker pay for the disposal costs of the can.
• D) the deposit allows the financing of trash baskets.
• E) the private costs exceed the social costs.

---

Definitions:

Cash Account

A financial account that records the amounts of cash available for transactions or held as reserves.

Variable Manufacturing Overhead

Indirect production costs that vary with the level of production output, such as utilities or raw materials.

Work In Process

A stage in the manufacturing process where items are partially completed but not yet ready to be sold.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including both materials and labor costs.