A Possible Solution to the Problems of External Benefits Is

question 252

Multiple Choice

A possible solution to the problems of external benefits is

• A) to tax those receiving the extra benefits.
• B) production of the good by government.
• C) effluent fees.
• D) to restrict the amount of the good through direct government regulation.

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Definitions:

Confirmatory Value

The usefulness of financial information in confirming or correcting prior expectations.

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and government bodies.

Revenue Agency

This is a government body responsible for the administration of tax laws and the collection of taxes and other revenue.

Current Assets

Items of value that are forecasted to be liquidated, traded, or depleted within the span of one year or throughout the duration of the operational cycle, whichever timeframe is greater.