Which of the Following Statements Is True of External Costs

question 356

Multiple Choice

Which of the following statements is true of external costs?

• A) External costs should not be corrected since people will bear the costs whether they are corrected or not.
• B) There are no good ways to correct for the external costs.
• C) When external costs exist, the price of the good will be deceptively low leading to an overallocation of resources.
• D) External costs should only be corrected for if the correction will not increase the market price.

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Definitions:

Subordinates

Employees or team members who are lower in rank or position and report to someone higher in the organizational hierarchy.

Communicate

The act or process of sharing or exchanging information, messages, or ideas through speech, writing, visual forms, or other mediums.

Empowered

Refers to giving power or authority to someone, often employees, enabling them to make decisions and take actions independently.

Free-Rein Leaders

Leadership style characterized by minimal supervision, allowing employees significant autonomy in how they complete tasks.