When Society Requires That Firms Reduce Pollution, There Is

question 200

Multiple Choice

When society requires that firms reduce pollution, there is

• A)a tradeoff because of reduced incomes to the firms' owners and workers.
• B)a tradeoff only if some firms are forced to close.
• C)no tradeoff, since the cost of reducing pollution falls only on the firms affected by the requirements.
• D)no tradeoff, since everyone benefits from reduced pollution.

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Definitions:

Credit

An accounting entry that increases liabilities and equity accounts or decreases assets and expense accounts, recorded on the right side of a ledger.

Defective Goods

Items that fail to meet quality standards due to flaws or faults, rendering them unsaleable or requiring correction.

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including interest rate, repayment schedule, and other terms of a credit agreement.

Accounts Payable

Amounts a company owes to its creditors for goods or services that have been delivered or used but not yet paid for.