Private Markets Fail to Reach a Socially Optimal Equilibrium When

question 311

Multiple Choice

Private markets fail to reach a socially optimal equilibrium when negative externalities are present because

• A)social costs equal private costs at the private market solution.
• B)private costs exceed social costs at the private market solution.
• C)social costs exceed private costs at the private market solution.
• D)they internalize externalities.

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Definitions:

Defensive Feelings

Emotional reactions that protect one's self-esteem or sense of competence, often triggered by perceived criticism or threat.

Performance Appraisals

The process through which an employee's performance is assessed and feedback is provided by their supervisor or manager.

Enforce Consequences

The act of applying or executing penalties or repercussions for not adhering to rules, laws, or agreements.

Performance Appraisals

A systematic evaluation of an employee's performance at work, typically involving feedback on achievements and areas for improvement.