Some Executives Show a Self-Serving Tendency to Attribute the Firm's

question 27

True/False

Some executives show a self-serving tendency to attribute the firm's problems not to their own poor decisions,but to environmental events out of their control such as government policies or a poor economic climate.

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Definitions:

Market Failure

A less than efficient allocation of resources.

Public Goods

Public goods refer to commodities or services that are made available to all members of a society, typically funded by the government, and characterized by non-excludability and non-rivalry in consumption.

Externalities

Consequences of an economic activity experienced by unrelated third parties; can be positive or negative.

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often justifying government intervention.