Which of the Following Produces External Benefits

question 73

Multiple Choice

Which of the following produces external benefits?

• A) Garbage dumped in the Atlantic Ocean.
• B) The inoculation of college students against the flu.
• C) Passive smoke in a public building.
• D) All of the choices are correct.

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Definitions:

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs, representing the surplus generated from business operations beyond the normal returns.

Hired Managers

Individuals employed by the owners of a firm to run the day-to-day operations and make business decisions.

Business Corporations

Legal entities that are formed to engage in business activities, owned by shareholders who share in the profits but are typically not liable for the company's debts.

Time-Value

A concept in economics that money available now is worth more than the same amount in the future due to its potential earning capacity.