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:

Inventory Value

Inventory value is the total cost or market value of all the goods held by a company that are ready or will be ready for sale.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Current Liabilities

Debts or obligations that a company is expected to pay within one year, including accounts payable, short-term loans, and accrued expenses.

Accounts Payable

Liabilities of a business that are due to suppliers for goods and services bought on credit, to be paid off within a short period.