Which of the Following Is an Example of a Negative

question 38

Multiple Choice

Which of the following is an example of a negative externality?

• A) Mel turns up the volume of his stereo to full blast, annoying his neighbors.
• B) Jason pays $20 for an hour's worth of statistics tutoring but fails the test anyway.
• C) Sheila buys a new sweater, then has to return it to the store after discovering a hole in the sleeve.
• D) Min wants to withdraw money from an ATM machine but finds a sign saying the machine is temporarily out of order.
• E) Lance lives by a bakery and every morning enjoys the smell of freshly baked bread.

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Definitions:

Invest

The act of allocating resources, usually money, in order to generate an income or profit.

Additional Staff

The employment of extra personnel beyond the current number to meet increased demands or to fulfill specific roles within an organization.

Total Collection Time

The total period it takes for a business to convert its accounts receivable into cash.

Cash Management

The process of collecting, managing, and investing a company's cash flows in a way that meets its operational and financial objectives.