Which of the Following Correctly Describes an External Benefit Resulting

question 163

Multiple Choice

Which of the following correctly describes an external benefit resulting from an individual's purchase of a winter flu shot?

• A) The flu shot is cheaper than the cost of treatment when you get the flu.
• B) The income of doctors increases when you get the flu shot.
• C) The flu shot reduces the likelihood of others catching the flu.
• D) The flu shot reduces the likelihood you will miss work as the result of sickness; therefore, you will earn more income.

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Definitions:

Guaranteed Investment Certificates

A type of Canadian investment that offers a guaranteed rate of return over a fixed period, typically issued by banks or financial institutions.

Effective-Interest Method

A technique for calculating the amortized cost of a bond and the amount of interest income over each period based on the bond's yield at issuance.

Bond Premium

Bond Premium represents the additional amount over the face value that investors pay when they purchase a bond, often due to its interest rate being higher than the current market rate.

IFRS And ASPE

International Financial Reporting Standards (IFRS) and Accounting Standards for Private Enterprises (ASPE) are sets of accounting standards for financial reporting.