Which of the Following Is Most Likely to Lead to the Underpricing

question 168

Multiple Choice

Which of the following is most likely to lead to the underpricing and overuse of an economic resource?

• A) Human greed and selfishness.
• B) Capital markets.
• C) The absence of an enforceable property right.
• D) The lack of understanding of pollution and its effects.

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Definitions:

Arbitrary Approach

A method based on individual judgment or preference rather than objective logic or system.

Promotion Mix

The combination of promotional tools used by an organization, including advertising, sales promotion, public relations, personal selling, and direct marketing.

Objective And Task

A method in advertising and marketing involving the setting of objectives and determining the tasks necessary to achieve them.

Budgeting Methods

Financial strategies used to plan and allocate resources, often income and expenditure, over a specified period.