Which of the Following Would Be an Example of a Nongovernmental

question 19

Multiple Choice

Which of the following would be an example of a nongovernmental solution to a problem associated with externalities?

• A)society's preference to drive large cars and SUVs
• B)a tax credit for the purchase of a hybrid auto
• C)a moral code against using sprinklers during a drought
• D)tax credits for the purchase of hybrid autos

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Earnings Per Share

A financial ratio calculated by dividing a company's net profit by the number of its outstanding shares, indicating the profitability on a per-share basis.

Bonds Payable

A long-term debt instrument issued by corporations or governments that promises to pay the holder a specified sum of money at a future date plus periodic interest payments.

Lease Liability

An obligation representing the present value of future lease payments that a lessee is committed to pay over the lease term.