Where Pollution Is Concerned, If an Automobile Driver Considers Only

question 231

Multiple Choice

Where pollution is concerned, if an automobile driver considers only the internal costs of his actions, he is apt to

• A) use resources very carefully and in small quantities.
• B) garage his car and drive very seldom.
• C) be making a positive contribution to the greater community.
• D) drive too much and use up more scarce resources than he would if he had to cover all his costs.

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Definitions:

Note Payable

A legal obligation representing a loan or promissory note that requires the borrower to repay the lender a certain amount of money at a future date or on demand.

Cash Payment

A transaction in which money is paid immediately at the time of purchase, not on credit.

Journal Entry

A record in accounting that documents a business transaction, including the accounts and amounts affected.

Prepaid Insurance

The cost of insurance premiums that have been paid in advance for future coverage, recorded as an asset on the balance sheet.