Crystal Clear Glass Company Uses a Refinement Method That Creates

question 27

Multiple Choice

Crystal Clear Glass Company uses a refinement method that creates air pollution,causing the recreational industry in the area to suffer and forcing a number of citizens to relocate.This behavior is an example of a(n)

• A) private cost.
• B) effluent fee.
• C) positive externality.
• D) external diseconomy.
• E) transfer payment.

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Definitions:

Acquired Assets

Assets obtained through purchase or merger by a company.

Double-Declining Balance

An accelerated method of depreciation that doubles the rate at which an asset's book value is reduced over time, reflecting quicker loss of value.

Straight-Line Depreciation

A technique for apportioning the price of a physical asset over its effective duration in steady annual portions.

Salvage Value

The expected salvage value of an asset after it has served its useful life.