In a "Second-Best" World

question 55

Multiple Choice

In a "second-best" world:

• A)tariffs are economically optimal.
• B)private actions are dictated by government agencies.
• C)social marginal cost of a transaction equals social marginal benefit.
• D)private actions do not lead to the best possible outcomes for society.

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Definitions:

Decentralization

A management strategy where decision-making powers are distributed throughout the organization rather than being concentrated in a small group or at the top level.

Authority

The right or power assigned to an individual or organization to make decisions, command, or judge.

Organization Levels

The various tiers or layers of hierarchy within an organization, categorizing employees and functions from top-level management to entry-level positions.

Staff Positions

Positions that provide technical expertise for other parts of the organization.