When an Activity Results in the Creation of External Benefits

question 61

True/False

When an activity results in the creation of external benefits, markets will produce more than the socially optimal level of that activity.

---

Definitions:

Follower Performance

Refers to the outcomes, behaviors, and contributions of individuals who are guided or directed by a leader within an organizational context.

Transactional Leadership

A leadership style focused on exchanges between leaders and followers, where compliance is rewarded, and noncompliance may be punished.

Leader Evaluations

The assessment of an individual's performance and qualities in a leadership role.

Charisma

Charisma means possessing a compelling attractiveness or charm that can inspire devotion in others, often seen in leaders.