If the Presence of Externalities Clouds the Signals That Prices

question 115

Multiple Choice

If the presence of externalities clouds the signals that prices give in respect to costs and benefits,:

• A) the market will produce an output level that is too high.
• B) the market will produce an output level that is too low.
• C) the invisible hand will fail to perfectly balance the allocation of resources across industries.
• D) the invisible hand will still achieve maximum economic efficiency.

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Definitions:

Team Building

Activities and practices aimed at enhancing the cohesiveness, communication, and efficiency of a team.

Role Relationships

The dynamic interactions and expectations between individuals in different positions within an organizational or social structure.

Organizational Processes

The methods and routines through which a company operates and ensures that its goals and objectives are efficiently achieved.

Reengineering

A radical redesign of business processes to achieve dramatic improvements in critical aspects like cost, quality, service, and speed.