If You Burn Your Trash in the Backyard in Spite

question 242

Multiple Choice

If you burn your trash in the backyard in spite of regulations against it, then you are

• A)acting economically irrationally and creating a social cost.
• B)avoiding the private costs associated with disposing your trash some other way and creating a social cost.
• C)acting rationally and creating a positive externality.
• D)saving landfill space and creating a social benefit.

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Definitions:

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability on a per-share basis.

Continuing Operations

Part of a company's business that is expected to continue operating into the foreseeable future, excluding any discontinued operations.

Unusual Items

Nonrecurring or unique charges or gains that are not expected to happen regularly, such as costs from lawsuits, restructuring, or natural disasters, that are reported separately in a company's financial statements.

Accounting Principles

Principles that provide the framework upon which accounting standards are constructed.