Air Pollution Generated by a Paper Mill Factory Is an Example

question 75

Multiple Choice

Air pollution generated by a paper mill factory is an example of a

• A)positive production externality.
• B)positive consumption externality.
• C)negative consumption externality.
• D)marginal external benefit.
• E)negative production externality.

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Definitions:

Accounts Payable Period

The average number of days it takes for a company to pay off its suppliers and creditors.

Accounts Payable Turnover

A financial efficiency ratio that measures how quickly a firm pays off its suppliers by dividing total purchases by average accounts payable.

Times

This term in a financial context often relates to ratios, such as the "times interest earned" ratio, which measures a company's ability to meet its debt obligations based on its earnings before interest and taxes.

Compensating Balance

A minimum account balance that a borrower must maintain as a condition for a bank loan, often to compensate the bank for extending credit.