A Positive Externality Is Internalized When

question 10

Multiple Choice

A positive externality is internalized when

• A)demand shifts to the right until the socially optimal level of output is obtained.
• B)demand shifts to the left until the socially optimal level of production is obtained.
• C)supply shifts to the left until the socially optimal level of production is obtained.
• D)supply and demand both shift to the left until the socially optimal level of production is obtained.

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Definitions:

Expectancy Theory

A motivation theory suggesting that individuals are more likely to engage in behaviors if they believe that the effort will lead to a favorable outcome.

Skills

are the abilities and expertise acquired through practice and education, allowing effective action in various tasks.

P-to-O Expectancies

The belief in the probability that particular efforts will lead to desired outcomes, often related to work motivation and performance.

Employee Motivation

The extent of passion, engagement, and inventive effort that a company's employees put into their tasks.