If Only a Few People Are Affected by an Externality,what

question 199

Multiple Choice

If only a few people are affected by an externality,what will likely happen

• A)Corrective taxes will provide the most efficient solution to the externality.
• B)Command-and-control regulation will provide the most efficient solution to the externality.
• C)A private solution to the inefficiency will occur.
• D)A private solution will be very difficult to negotiate.

---

Definitions:

Whistleblower

An individual who exposes any kind of information or activity that is deemed illegal, unethical, or not correct within an organization.

Fraudulent Accounting

A practice involving intentional manipulation of financial statements to present a false picture of a company's financial health.

Ethics

Ethics is the branch of philosophy dealing with moral principles that govern a person's behavior or the conducting of an activity.

Social Responsibility Initiatives

Programs or actions taken by a company to benefit society, including charitable efforts, sustainability projects, and ethical business practices.