When Externalities Are Present in a Market,how Is the Well-Being

question 161

Multiple Choice

When externalities are present in a market,how is the well-being of market participants and market bystanders affected by government policies

• A)Market participants are directly affected, and market bystanders are indirectly affected.
• B)Market participants and market bystanders are both directly affected.
• C)Market participants and market bystanders are both indirectly affected.
• D)Market participants are indirectly affected, and market bystanders are directly affected.

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Definitions:

Ethical Intensity

Ethical Intensity refers to the perceived importance or significance of an ethical issue, determined by its potential outcomes and the degree of impact on stakeholders.

Ethics-Based Principles

Moral guidelines that govern the behavior and decision-making of individuals or organizations.

Determination of Rights

The process of legally establishing or affirming individuals' entitlements or privileges under the law.

Organization's Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business or entity.