A Consequence of a Negative Externality Is That Social Costs

question 40

Multiple Choice

A consequence of a negative externality is that social costs __________ private costs, and the socially optimal level of output __________.

• A)equal; is not equal to social costs or private costs
• B)do not equal; is obtained
• C)do not equal; is not obtained
• D)equal; is obtained
• E)equal; is not obtained

Understand the principles of setting effective performance standards.

Identify the roles of reliability and validity in performance evaluations.

Differentiate between administrative and developmental purposes of performance evaluations.

Recognize the impact of organizational politics and bias on performance evaluations.

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Definitions:

S&P Category

A classification system used by Standard & Poor's to categorize and evaluate stocks or other securities based on their sector or characteristics.

CCC/C

A credit rating symbol used by rating agencies to denote a high risk of default; regarding bonds or loans, it signifies very poor credit quality.

Default Rate

The percentage of borrowers who fail to make payments on their debts or loans as agreed, leading to a default status.

Moody's "Aaa"

The highest credit rating given by Moody's Investors Service, denoting the lowest risk of default for bonds and other fixed-income securities.