Negative Externalities Can Diminish a Property's Value by Imposing Costs

question 24

Multiple Choice

Negative externalities can diminish a property's value by imposing costs on the community at large. In order to offset this detrimental impact, economists advocate "internalizing" these externalities by implementing:

• A) performance standards
• B) impact fees
• C) growth moratoriums
• D) planned unit developments

---

Definitions:

Parent Corporation

A company that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Subsidiary's Stock

Shares of ownership in a company which is controlled by another firm, where the controlling firm owns more than 50% of the subsidiary's stock.

Preliminary Injunction

A temporary court order issued at the beginning of a legal action, prohibiting a party from performing a specific act until a final decision is made.

Merger

The process by which two or more companies combine into one entity, often to expand market share or reduce competition.