Use the Following to Answer Questions

question 188

Multiple Choice

Use the following to answer questions:
Figure: Model of a Competitive Market
-(Figure: Model of a Competitive Market) Given the figure Model of a Competitive Market, if there are external costs, a tax imposed on sellers will:

• A) decrease the equilibrium quantity.
• B) increase the equilibrium quantity.
• C) have no effect on the equilibrium price.
• D) decrease the equilibrium price.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Base Pay Method

A compensation approach that determines the initial salary offered to an employee, not including extra forms of compensation like bonuses or overtime.

Market Pricing

The process of determining the salary levels and ranges for positions within a company by comparing them with similar jobs in the external labor market.

Job Evaluation

A systematic process for determining the relative value or worth of a job in an organization, which helps to establish fair compensation.