Which of the Following Would Be an Example of a Nongovernmental

question 147

Multiple Choice

Which of the following would be an example of a nongovernmental solution to a problem associated with externalities?

• A)​society's preference to drive large cars and SUVs
• B)​new stricter anti-litter laws
• C)​a general moral commitment against using sprinklers during a drought
• D)​tax credits for the purchase of hybrid autos

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Definitions:

Manufacturing Businesses

Companies involved in the production of goods by transforming raw materials into finished products.

Net Realisable Value

The estimated selling price of an asset in the ordinary course of business, minus any costs associated with its sale or disposal.

Inventory

The stock of goods or materials held by a company, typically used in production or sold to customers.

Service Costing

The process of determining the total cost involved in providing a service, including direct and indirect costs, to establish pricing and profitability.