An Example of the Opportunity Costs Involved with Social Regulation

question 44

Multiple Choice

An example of the opportunity costs involved with social regulation would be:

• A)the monetary costs of hiring administrative assistants to fill out OSHA safety reports.
• B)the environmental costs of pollution control required under the Clean Air Act.
• C)the monetary costs of laboratory trials required to try out a new drug.
• D)the lives that are lost because new drugs are not introduced quickly enough.
• E)the monetary cost of manufacturing a life saving drug.

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Definitions:

Right Side

In accounting, refers to the credit side of a ledger account, opposite to the left or debit side, showcasing the sources of funds or increases in liabilities or equity.

Decrease Side

The side of an accounting equation or ledger where decreases in assets, expenses, or dividends are recorded, often the credit side for assets and the debit side for liabilities and equity.

Asset Account

A category within the general ledger that reports the value of a company's assets such as cash, equipment, and property.

Liability Account

An accounting record that reports the amounts a company owes to creditors and other parties, often categorized as current or long-term.