The Production of a Certain Fertilizer Emits a Gas That

question 22

Multiple Choice

The production of a certain fertilizer emits a gas that keeps away mosquitoes and other insects from the surrounding community.This is an example of ________.

• A) a positive externality
• B) absolute advantage
• C) a pecuniary externality
• D) comparative advantage

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Definitions:

Lower Of Cost

An accounting principle requiring inventory to be recorded at the lower of its historical cost or market value.

Market

A venue or mechanism where buyers and sellers engage in the exchange of goods, services, or financial instruments.

LIFO Inventory

An inventory valuation method where the last items added to inventory are the first ones to be used or sold.