Correcting a Market with an Externality Through Taxation Creates _______

question 127

Multiple Choice

Correcting a market with an externality through taxation creates _______ total surplus compared to correcting the market through the use of a quota.

• A)more
• B)less
• C)the same amount of
• D)All of these could be true dependent on whether the tax is imposed on the buyer or seller.

---

Definitions:

Organizational Settings

The physical and social environment in which organizational activities occur, including the culture, structure, and processes within.

Influence Others

The ability to affect the beliefs, attitudes, or behaviors of others through direct or indirect methods, critical in leadership and interpersonal relationships.

Decision Rules

Guidelines or criteria used to choose between alternatives or make judgments in decision-making processes.

Organizational Politics

The use of tactics and strategies by individuals or groups within an organization to gain power or influence decisions for personal advantage.