Which of the Following Is the Government Most Likely to Discourage

question 16

Multiple Choice

Which of the following is the government most likely to discourage because of the existence of externalities?

• A)All goods and services produced by monopolies.
• B)Cars that create an excessive amount of exhaust fumes.
• C)Thermal pollution from a power plant that improves fishing downstream.
• D)Fatty foods that lead to heart disease.

Discuss empowering and ethical leadership elements and their implications on employee work outcomes.

Understand different types of cognitive biases and their impact on decision making.

Explain the role of heuristics in problem-solving and judgment.

Distinguish between representativeness and availability heuristics.

---

Definitions:

Marginal Cost

The extra expense associated with manufacturing an additional unit of a product or service.

Cartel

An agreement among competing firms to control prices or exclude entry of a new competitor in a market.

Marginal Cost

The change in total cost that arises when the quantity produced is increased by one unit.

Perfectly Competitive

A market structure where many firms sell identical products, entry and exit are easy, and no single seller can influence the market price.