Whether an Externality Is Positive or Negative, It Is Always

question 214

Multiple Choice

Whether an externality is positive or negative, it is always

• A) evaluated by the Supreme Court of the United States.
• B) evaluated by the government.
• C) evaluated by the impact on the third party.
• D) judged by the profitability of the firm producing the product.

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Definitions:

Depreciation

The gradual decrease in the economic value of the capital assets of a firm or nation due to wear and tear, obsolescence, or age, often accounted for in financial statements through depreciation expense.

Disposable Income

Income available to an individual or family after taxes, which can be spent or saved.

Disposable Income

The capital households have left for spending and saving after paying income taxes.

Disposable Income

The financial capacity of households to spend and save, net of income taxes.