Which of the Following Is an Example of a Negative

question 15

Multiple Choice

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

• A) power plants producing pollution as a side effect of energy production
• B) Apple selling computers to Chinese consumers
• C) the Fed buying assets to try to encourage the American economy out of a recession
• D) investing in schools so that citizens are more productive
• E) balancing the budget every year

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Definitions:

Bulk Transfer

The transfer of a substantial part of the materials, inventory, or supplies of a business outside the ordinary course of business.

Ordinary Course of Business

The regular, usual, and customary activities and operations that a company engages in to conduct its business.

Consignment

The process of handing over goods to another party to sell on behalf of the owner, yet ownership remains with the original party until the goods are sold.

Personal Property

Movable items owned by an individual or corporation, as opposed to real property like land or buildings.