All of the Following Are Examples of an External Failure

question 142

Multiple Choice

All of the following are examples of an external failure except

• A) refunds to customers.
• B) transportation costs to return defective products.
• C) factory recalls.
• D) raw materials costs.
• E) possible lawsuits.

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Definitions:

Investment Funds

Pooled funds that gather resources from many investors to invest in securities such as stocks, bonds, money market devices, and other assets.

Government Allocated

Refers to resources, funds, or opportunities distributed by the government according to certain criteria or needs.

Mistakenly Made

Created or performed in error, not aligning with the intended outcome or specification.

Generate Losses

To incur negative financial results, typically by spending more than is earned or received in revenue.