Market Failure Because of Negative Externality Results In

question 23

Multiple Choice

Market failure because of negative externality results in:

• A) marginal social cost equal to marginal private costs.
• B) marginal social cost less than marginal social benefits.
• C) marginal social cost equal to marginal social benefits.
• D) greater outputs and lower price than socially desirable.

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Definitions:

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.

Performance Accurately

The precise and correct execution or accomplishment of a task or duty as required.

Expectancy Theory

A motivation theory stating that an individual's willingness to exert effort is a function of the expected outcome of the effort, the value of that outcome, and the perceived likelihood that the effort will lead to the expected outcome.