If a Road Is Congested, Then Use of That Road

question 356

Multiple Choice

If a road is congested, then use of that road by an additional person would lead to a

• A)negative externality.
• B)positive externality.
• C)Pigovian externality.
• D)free-rider problem with rush hour drivers stuck in traffic.

---

Definitions:

Cash Balance

The amount of cash held by a company, reflected in its financial statements, showing the liquidity available for operations and investments.

NSF Check

A check that a bank returns without honoring because the account on which it was drawn does not have sufficient funds.

Bank Reconciliation

The process of matching and comparing a company's financial records with those of its bank statements to ensure consistency and accuracy.

Bad Check

A check that cannot be processed because the issuer has insufficient funds or the account is closed.