If the External Costs of Production Are Not Taken into Account

question 183

Multiple Choice

If the external costs of production are not taken into account, then production will

• A) be less than socially desirable.
• B) be more than socially desirable.
• C) be the same since only prices are affected by externalities.
• D) cease.

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Definitions:

Right to Direct

The authority granted to employers to instruct and guide employees on how to perform their job duties.

Power

The ability or capacity to influence or control the behavior of others, often based on a variety of potential sources like authority, knowledge, or networks.

Authority

The legitimized power or right to make decisions, direct others, and expect compliance within a specific realm.

Responsibility

An obligation or duty to perform or complete a task or role, usually with accountability for the outcome.