On Saturdays, Stan Goes to the Park to Play His

question 12

Multiple Choice

On Saturdays, Stan goes to the park to play his saxophone. Some of the people in the park love listening to Stan play, while others find his music really annoying. In this case, Stan's saxophone playing generates:

• A)a negative externality.
• B)a positive externality.
• C)neither a positive nor a negative externality.
• D)both positive and negative externalities.

---

Definitions:

Net Increase

The amount by which a company's financial or operational metric grows within a specific period.

Decrease in Inventory

A reduction in the amount of goods available for sale, either due to sales activities or other factors such as spoilage or theft.

Operating Equipment

Assets used in the day-to-day operations of a business, such as machinery and office equipment.

Net Cash

The amount of cash available after subtracting cash outflows from cash inflows.