Figure 10-14 -Refer to Figure 10-14. Which of the Following Statements Is

question 413

Multiple Choice

Figure 10-14
-Refer to Figure 10-14. Which of the following statements is correct?

• A)To induce firms to internalize the externality in this market, the government should impose a tax measured by P₂ - P₀.
• B)To induce firms to internalize the externality in this market, the government should offer a subsidy measured by P₂ - P₀.
• C)To induce firms to internalize the externality in this market, the government should impose a tax measured by P₂ - P₁.
• D)There is no externality in this market.

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Definitions:

Situational Approach

A leadership model suggesting that the most effective leadership style varies according to the situation or context.

Leader Behaviors

Actions and attitudes displayed by leaders that influence their group's performance, morale, and effectiveness.

Expectancy Theory

A motivational theory suggesting that individuals are likely to act in a certain way based on the expectation that the act will be followed by a desired outcome.

Path-goal Leadership

A theory that suggests leaders should adjust their style to fit the developmental and psychological needs of their followers to achieve the desired goal.