Exhibit 31-4 -Refer to Exhibit 31-4. If a Negative Externality Exists,then the Negative

question 116

Multiple Choice

Exhibit 31-4

-Refer to Exhibit 31-4. If a negative externality exists,then the market ____________output by the amount ________________.

• A) overproduces; Q₁
• B) underproduces; Q₂
• C) overproduces; Q₁ - Q₂
• D) underproduces; Q₂ - Q₁

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Definitions:

Managers

Individuals responsible for planning, leading, organizing, and controlling the operations of a business or a part of it to achieve organizational objectives.

Pay

Compensation received by an employee for their work or services.

Motivator

An internal or external factor that provides the incentive or reason for someone to act or behave in a certain manner.

Performance

The act of carrying out a task or the level of efficiency and effectiveness with which this task is completed.