Which of the Following Is an Example of an Activity

question 70

Multiple Choice

Which of the following is an example of an activity that generates positive externalities?

• A)driving a car that emits high amounts of carbon monoxide
• B)dumping wastes into a river
• C)littering streets
• D)initiating a program to encourage education
• E)smoking in a public place

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a marketplace, determined by supply and demand dynamics.

Strike Price

In options trading, the predetermined price at which the holder of the option can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.

Put Option

This is a financial deal which provides the participant the freedom, but not the compulsion, to part with a given amount of a principal asset at an established cost during a set span.

Market Price

The existing rate at which a service or asset is available for buying or selling in a market environment.