Which of the Following Would Result in a Positive Externality

question 116

Multiple Choice

Which of the following would result in a positive externality?

• A)A local government establishes a price ceiling on rental apartments.
• B)An electric utility burns coal that causes acid rain.
• C)Medical research results in a cure for malaria.
• D)McDonald's adds new fat-free items to its menu.

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Definitions:

Sarbanes-Oxley Act

A United States federal law established in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.

Securities and Exchange Commission

A U.S. government agency that oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception.

Referral System

A structured way of encouraging people to recommend a business's products or services to others, often rewarded with incentives.

Consultants

Professionals who provide expert advice in a particular area such as business, education, law, regulatory compliance, or healthcare.