If There Is a Negative Externality, and the Market Output

question 35

Multiple Choice

If there is a negative externality, and the market output is 100 units more than the socially optimal output, then it follows that

• A)the external costs associated with the negative externality are greater than the marginal private costs.
• B)the external costs associated with the negative externality are less than the marginal private costs.
• C)there is market failure.
• D)any tax imposed on the production of the output will bring about the socially optimal output.
• E)none of the above

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Definitions:

Management Openness

The degree to which managers are approachable and willing to listen to feedback and ideas from employees.

Relationship-oriented Attitudes

Perspectives or beliefs that prioritize the importance of interpersonal connections and communication in a \group or organization.

Zero-tolerance Stand

A policy that doesn't allow for any violation, no matter how minor, enforcing strict consequences.

Lackadaisical Attitude

A disinterested or sluggish attitude, showing little enthusiasm or diligence towards tasks or responsibilities.