If Children Go to School and Become Productive Members of Society

question 24

Multiple Choice

If children go to school and become productive members of society,

• A) a negative externality is created by the schools.
• B) a positive externality is created by the schools.
• C) no externality is created by the schools.
• D) an externality is created that may be positive or negative.

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Definitions:

Withdrawals

The act of taking out cash or other assets from a business by the owner for their personal use.

Capital

Capital refers to financial assets or the financial value of assets, such as funds held in deposit accounts, as well as the physical factors of production including machinery and buildings.

Prepaid Insurance Expense

The portion of insurance premiums that have been paid in advance and are recognized as an asset until the insurance coverage relates to future periods.

Advertising Expense

Costs incurred in promoting products or services to attract sales or increase brand awareness.