Dioxin Emission That Results from the Production of Paper Is

question 462

Multiple Choice

Dioxin emission that results from the production of paper is a good example of a negative externality because

• A)self-interested paper firms are generally unaware of environmental regulations.
• B)there are fines for producing too much dioxin.
• C)self-interested paper producers will not consider the full cost of the dioxin pollution they create.
• D)toxic emissions are the best example of an externality.

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Definitions:

Materials

Raw inputs used in the manufacturing of products or goods, part of the direct costs in production.

Direct Method

A cash flow statement reporting approach that lists major categories of gross cash receipts and payments.

Service Department

A segment of an organization that provides support services to other departments, rather than directly contributing to the production of goods.

Computer Workstations

High-performance computers designed for technical or scientific applications, often more powerful than typical personal computers.