What Is an Example of an Externality

question 96

Multiple Choice

What is an example of an externality

• A)the impact of bad weather on the income of farmers
• B)the impact of the personal income tax on a person's ability to purchase goods and services
• C)the impact of pollution from a factory on the health of people in the vicinity of the factory
• D)the impact of increases in health care costs on the health of individuals in society

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Definitions:

Income Recognition

The accounting principle that income should be recognized in the accounting period in which it is earned.

Transaction

A financial operation between two parties involving an exchange or transfer of goods, services, or funds.

Social Security Income

Social Security Income (SSI) is a government program that provides financial assistance to individuals who are elderly, blind, or have disabilities, based on income needs.

Taxable Amount

The taxable amount is the portion of income or a financial transaction that is subject to taxes according to the laws and regulations of the tax jurisdiction.