Market Failure in the Form of Externalities Arises When

question 38

Multiple Choice

Market failure in the form of externalities arises when

• A) production costs are included in the prices of goods.
• B) there are costs and/or benefits that result from a transaction and affect someone other than the parties involved in the transaction.
• C) the benefits exceed the costs of consuming goods.
• D) the market fails to achieve equilibrium.

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Definitions:

Job Ranking Method

A simple system of job evaluation used to rank jobs in an organization in order of their importance or complexity.

Factor Analysis Method

A statistical technique used to identify underlying variables, or factors, that explain the pattern of correlations within a set of observed variables.

Benchmarking Method

A process of comparing business processes and performance metrics to industry bests or best practices from other companies.

Comparable Worth Laws

Legislation designed to ensure that jobs of equal value to the employer are compensated equally, irrespective of gender or other irrelevant factors.