Externalities Essentially Create ________

question 40

Multiple Choice

Externalities essentially create ________.

• A) non-excludability in consumption
• B) non-rivalry in consumption
• C) a divergence between private and social costs
• D) a free-rider problem

---

Definitions:

Store Equipment

Fixed assets like shelves, registers, and computers used in the operation of a retail store.

Periodic Inventory Method

An accounting method where inventory is physically counted and valued at specific intervals.

Voucher Payment

Voucher payment involves the use of a voucher system where approval documents are prepared and used as the basis for making payments to vendors.

Net Method

An accounting practice where discounts for early payment are assumed to be taken and purchase or sale transactions are recorded at the net, discounted amount.