When the People Creating an Externality Are Made to Pay

question 75

True/False

When the people creating an externality are made to pay for the externality by the government,the externality is said to be internalized.

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Definitions:

Debt and Equity

Components of a company's capital structure, with debt representing borrowed money to be paid back and equity representing ownership interest.

Inventory

The products and supplies that a company possesses with the primary intention of selling or converting them.

Financial Manager

A professional responsible for the financial health of a corporation, overseeing investment activities, and planning strategies for the long-term financial objectives.

Distribution Center

A facility where goods are received, stored, and then distributed to consumers or retail outlets.