If a Good That Involves External Costs Is Priced to Take

question 85

Multiple Choice

If a good that involves external costs is priced to take these costs into account, then its:

• A) price would fall and output would go up.
• B) price would rise and output would fall.
• C) price would not change but output would fall.
• D) price would rise but output would stay the same.

Understand the role of public pressure and international organizations in enforcing corporate codes of conduct.

Identify the effects of corporate strategic decisions on labor relations and bargaining power.

Comprehend the principles of the shareholder-value movement and its implications on corporate practices.

Recognize the importance of fair labor practices and environmental standards in corporate codes of conduct.

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Definitions:

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.

Borrowers

Individuals or entities that take out loans from financial institutions or other sources, committing to repay them over a specified period, often with interest.

Lenders

Individuals, organizations, or institutions that provide funds to borrowers under the agreement that the funds will be repaid with interest at a later date.

Fixed Incomes

Financial incomes that are set at a particular figure and do not fluctuate in the short term, such as bonds or pensions.