Since Air Pollution Creates a Negative Externality

question 64

Multiple Choice

Since air pollution creates a negative externality,

• A)social welfare will be enhanced when some, but not all air pollution is eliminated.
• B)social welfare is optimal when all air pollution is eliminated.
• C)governments should encourage private firms to consider only private costs.
• D)the free market result maximizes social welfare.

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Definitions:

Organizational Artifacts

Physical and symbolic items that represent the culture, values, and practices of an organization.

Organizational Culture

The set of shared beliefs, values, norms, and practices that shapes the social and psychological environment of an organization.

Cultural Strength

The degree to which shared values, beliefs, and norms contribute to the social and psychological well-being of an organization.

External Environment

The conditions, entities, events, and factors surrounding an organization that influence its activities and choices but are beyond its control.