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:

Sales Revenue

The sum of revenue from the sale of products or services that are fundamental to a company's main business activities.

Accounting Equation

The accounting equation is a fundamental principle of financial accounting that states assets equal liabilities plus equity.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, essentially representing ownership interest.

Expense Accounts

Accounts in the general ledger that are used to record various costs and expenses incurred by a business.