__________ Is a Formal Team Composed of a Manager and His

question 91

Multiple Choice

__________ is a formal team composed of a manager and his or her subordinates.

• A) Vertical team
• B) Horizontal team
• C) Self-managed team
• D) Special-purpose team
• E) Social team

---

Definitions:

Negative Externality

An adverse effect suffered by a third party as a result of an economic transaction in which they had no involvement.

Internalize

The process of incorporating the cost of externalities into the decision-making process of firms or individuals.

Marginal Social Cost

Marginal social cost is the total cost to society of producing an additional unit of a good, including both private costs and any external costs.

External Costs

Costs incurred as a result of an economic activity that are not borne by the entities undertaking the activity but rather by other parties or society at large.