Which of the Following Is One Problem That Keeps People

question 144

Multiple Choice

Which of the following is one problem that keeps people from privately solving externalities?

• A)each party involved holds out for a better deal
• B)an efficient bargain price is unattainable
• C)only problems with a sufficiently large number of parties can be solved
• D)there is a lack of government intervention

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Definitions:

Double-Declining-Balance

A method of accelerated depreciation that doubles the normal depreciation rate, reducing the book value of assets more quickly in the early years.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, which reflects the loss in value due to usage, wear and tear, or obsolescence.

Residual Value

The forecasted price an asset is likely to command at the end of its usefulness.

Component Depreciation

A method of depreciation where different components of a fixed asset are depreciated separately over their respective useful lives.