Which of the Following Gives Rise to a Pecuniary Externality

question 129

Multiple Choice

Which of the following gives rise to a pecuniary externality?

• A) Excessive consumption of alcohol leading to bad health
• B) A sudden increase in the demand for diamonds, leading to an increase in their prices
• C) Deforestation, leading to the extinction of many species
• D) Globalization, leading to the displacement of indigenous workers

---

Definitions:

Interim Financial Statement

Interim financial statements are financial reports covering a period of less than a full fiscal year, providing a more immediate view of financial health.

Capital

Refers to financial assets or the financial value of assets, such as cash and goods, used by a business to fund its operations and growth.

Fees Earned

Income received from providing services, typically recognized in the accounting period when the services are rendered.

Wage Expense

The total cost incurred by a company for the salaries and wages of its employees.