Which of the Following Is an Example of an Undesirable

question 128

Multiple Choice

Which of the following is an example of an undesirable side effect of the operation of the market mechanism?

• A)negative externalities 
• B)comparative advantages 
• C)abstractions 
• D)productivity growth

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Definitions:

Indirect Expense

Costs that are not directly linked to the production of goods or services but are necessary for the business's day-to-day operations, such as utilities and rent.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, recognizing it as an expense.

Property

Assets owned by an individual or business, encompassing real estate, personal property, and intellectual property rights.

Net Income

When revenue totals more than expenses, the result is net income.