Good Intuition Can Be an Effective Capacity for a Manager

question 48

True/False

Good intuition can be an effective capacity for a manager to possess, but it can be a dangerous quality.

---

Definitions:

Negative Externalities

A situation where a third party suffers from a decision or action made by others, typically not reflected in the market price.

Positive Externalities

Benefits enjoyed by third-party individuals or the society at large, which result from an economic activity but are not reflected in the market prices.

Negative Externality

An external effect of a product or activity that imposes a negative impact on a third party or the environment.

Internalize

The process of taking into account the external effects of economic actions, such as externalities, within the decision-making process.