When Society Requires That Firms Reduce Pollution, What Happens

question 72

Multiple Choice

When society requires that firms reduce pollution, what happens?

• A)There is a tradeoff because of reduced incomes to the firms' owners, workers, and customers.
• B)There is no tradeoff, since everyone benefits from reduced pollution.
• C)There is no tradeoff for society as a whole, since the cost of reducing pollution falls only on the firms affected by the requirements.
• D)There is a tradeoff only if some firms are forced to close.

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Definitions:

Loaned

Refers to money or assets that have been lent to another party under an agreement to be repaid, often with interest.

U.S. GAAP

The standard set of guidelines for financial accounting in the United States, known as Generally Accepted Accounting Principles.

IFRS

International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide how financial transactions and other accounting events are reported in financial statements.

Accounting Treatment

The method by which financial events are recorded and presented in the accounts of a business.