For a Market to Work Efficiently

question 25

Multiple Choice

For a market to work efficiently

• A) the external costs must be paid.
• B) all external costs must be eliminated.
• C) all internal costs must be eliminated.
• D) the social costs must be equal to the internal costs.
• E) all pollution must be eliminated.

---

Definitions:

FASB

The Financial Accounting Standards Board, an organization responsible for establishing and improving financial accounting and reporting standards in the U.S.

Managerial Accounting

The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations, in planning future operations, and in developing overall business strategies.

Strategic Decisions

Choice made by an organization's top management on long-term goals and policies, usually involving resources allocation and efforts to achieve competitive advantage.

Externally Imposed Benchmarks

Standards or measures of performance that are set by external organizations or bodies, which a company must meet or comply with.