When the Private Costs and the Social Costs Are NOT

question 155

Multiple Choice

When the private costs and the social costs are NOT the same, there is a(n)

• A) externality.
• B) internality.
• C) public good.
• D) monopoly.

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Definitions:

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financial activities.

Issuance of Long-Term Debt

The process by which a company borrows money from financial institutions or through the sale of bonds, agreeing to repay the principal, along with interest, over a period longer than one year.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures, indicating the financial health and liquidity.

Operating Cash Flow

Represents the amount of cash generated by a company's normal business operations.