The Existence of Externalities Is Due Mainly to the Fact

question 64

Multiple Choice

The existence of externalities is due mainly to the fact that

• A) monopolies tend to produce too little of a good anyway.
• B) the optimal level of pollution is zero.
• C) pollution is not a serious problem.
• D) property rights are poorly defined.

---

Definitions:

Theory X

A management concept that assumes employees are inherently lazy and will avoid work if they can, necessitating a controlling management style.

Gullible

Easily deceived or tricked because of being too trusting.

Production-Centered Management

A management approach focusing primarily on the output and productivity of workers, often at the expense of employee satisfaction or creativity.

People-Centered Management

A management style that prioritizes the well-being and development of employees as the key to organizational success.