When Production of a Good Generates External Costs, the

question 131

Multiple Choice

When production of a good generates external costs, the

• A) demand curve for the good will overstate the true social benefits from consumption of the good.
• B) demand curve for the good will understate the true social benefits from consumption of the good.
• C) supply curve for the good will overstate the true social cost of producing the good.
• D) supply curve for the good will understate the true social cost of producing the good.

Understand the concept and implications of spoofing in electronic communications.

Recognize the legal restrictions on polygraph and lie detector tests in the workplace.

Identify the circumstances under which postaccident testing is considered and its relevance to safety-sensitive positions.

Comprehend the rights of employers to require drug and alcohol testing under applicable laws.

---

Definitions:

Acronyms

Terms created from the first letters of several words that are spoken as a single word.

Planning Aspect

The phase of project management that involves outlining goals, strategies, tasks, and schedules to achieve desired outcomes.

Rich Medium

A communication channel that allows for immediate feedback, conveys multiple cues (such as tone, facial expression), and supports natural language.

Confidentiality

The principle or practice of maintaining the privacy of information shared in a trusted context, preventing disclosure to unauthorized parties.