Which of the Following Is NOT an Example of a Good

question 65

Multiple Choice

Which of the following is NOT an example of a good with an external cost?

• A) electricity generation that produces carbon dioxide emissions that contribute toward global warming
• B) logging that pollutes a nearby river
• C) Jess smoking near her non-smoking roommate
• D) Ahmed working at a bank and he gets a flu shot each fall
• E) noise pollution from aircraft

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Definitions:

Short-Term Investments

Financial assets that are expected to be converted into cash or sold within a year.

Seasonal Fluctuations

Variations in business activity, sales, or performance that occur regularly at certain times of the year due to the season.

Debt Securities

Financial tools that signify an investor lending money to a borrower, commonly consisting of bonds, notes, and bills.

Speculative Reasons

Motivations based on speculation where actions are taken with the expectation of future financial gains or losses.