Consider Two Goods--One That Generates External Benefits and Another That

question 50

Multiple Choice

Consider two goods--one that generates external benefits and another that generates external costs. A competitive market economy would tend to produce too

• A) much of both goods.
• B) little of both goods.
• C) much of the good that generates external benefits and too little of the good that generates external cost.
• D) little of the good that generates external benefits and too much of the good that generates the external cost.

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Definitions:

Ratio

A ratio is a quantitative relationship between two numbers, showing how many times the first number contains the second or how the two numbers compare.

Bank Reconciliation

The method of aligning the figures in a company's bookkeeping records for a cash account with the equivalent data on a bank statement.

NSF Check

Non-Sufficient Funds Check, a bank check that cannot be honored because the account on which it is drawn does not have enough funds.

Outstanding Checks

Checks that have been written and recorded in the payer's financial records but not yet cleared or cashed by the recipient.