A Positive Externality Exists When

question 54

Multiple Choice

A positive externality exists when:

• A)a person engages in an activity that has a spillover that makes a bystander better off
• B)the market has only one seller
• C)a firm sells its product in an external foreign market
• D)a person engages in an activity that has a spillover that makes a bystander worse off

Recognize the importance of expert and referent power in effective leadership.

Analyze the impact of solving important problems and innovation on power and leadership effectiveness.

Understand the methods and tactics used for influencing attitudes and behavior within organizations.

Differentiate between appropriate and inappropriate uses of power and influence tactics in work settings.

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Definitions:

Finance

The science of managing funds, including activities such as saving, lending, investing, budgeting, and forecasting.

Reasoning Errors

Reasoning errors are mistakes in logical thinking that occur when drawing conclusions or making decisions, often leading to incorrect or biased outcomes.

Overly Optimistic

Describes an excessively positive outlook on situations, often disregarding potential risks or negative outcomes.

Over-Confidence

A cognitive bias where an individual's belief in their own abilities or the prospects of a situation are excessively optimistic beyond what evidence supports.