Positive Externalities Are Created When

question 17

Multiple Choice

Positive externalities are created when

• A) other consumers reduce their demand for coffee and price thereby declines.
• B) farmers spray pesticide in their fields and it washes into the local river after the first rainstorm.
• C) your neighbor plants beautiful trees and flowers in her yard.
• D) you purchase the "Mona Lisa" and lock it in a vault.

---

Definitions:

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or budgeted) cost, based on standard rates and actual hours worked.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (or standard) cost, used to assess cost management performance in procurement.

Milk Chocolate

A type of chocolate that includes milk powder or condensed milk as a main ingredient, giving it a smooth, rich flavor and creamy texture.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, used to assess efficiency and control payroll costs.