When Externalities Exist, Buyers and Sellers

question 70

Multiple Choice

When externalities exist, buyers and sellers:

• A) neglect the external effects of their actions but the market equilibrium is still efficient
• B) neglect the external effects of their actions and the market equilibrium is not efficient
• C) do not neglect the external effects of their actions and the market equilibrium is efficient
• D) do not neglect the external effects of their actions and the market equilibrium is not efficient

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Definitions:

Team Cohesiveness

The extent to which team members are attracted to the team and motivated to remain part of it, resulting in higher productivity and morale.

Membership Homogeneity

The degree to which members of a group or team share similar characteristics or backgrounds, which can affect group dynamics and performance.

Team Goals

Objectives set by a group of individuals working together, which are intended to guide and motivate the team towards common achievements.

Task Activities

The specific actions or work carried out by individuals or groups to achieve a particular goal or task.