Suppose Two Neighborhoods with 10 Homes Each in Buffalo,New York

question 294

Multiple Choice

Suppose two neighborhoods with 10 homes each in Buffalo,New York are identical except one of them is near a toxic waste dump.If homes near the dump sell for an average of $40,000 and the other homes sell for $90,000,the external cost of the dump is

• A) $400,000.
• B) $1,300,000.
• C) $900,000.
• D) $500,000.
• E) $90,000.

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Definitions:

Unethical Business Decisions

Choices made in business practices that are morally wrong, illegal, or fall outside of accepted moral guidelines or standards.

Publicly Traded Companies

Companies whose shares are listed on a stock exchange and can be bought and sold by the public.

Codify

The process of collecting and systematizing laws, rules, or regulations into a single, coherent code.

Ethical Requirement

Standards of conduct based on moral principles that individuals or organizations are expected to follow.