When an Externality Is Present, the Market Equilibrium Is

question 116

Multiple Choice

When an externality is present, the market equilibrium is

• A)efficient, and the equilibrium maximizes the total benefit to society as a whole.
• B)efficient, but the equilibrium does not maximize the total benefit to society as a whole.
• C)inefficient, but the equilibrium maximizes the total benefit to society as a whole.
• D)inefficient, and the equilibrium does not maximize the total benefit to society as a whole.

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Definitions:

Servant Leadership Questionnaire

An assessment tool designed to measure the degree to which individuals display behaviors associated with servant leadership.

Altruism

The selfless concern for the well-being of others, often leading to actions that benefit someone else at a personal cost.

Cognitive Ability

The capacity of the brain to process information, learn from experiences, reason, and solve problems.

Liden's Servant Leadership

A leadership approach identified by Robert C. Liden that emphasizes the leader's role in serving the needs of followers, thus promoting their development and performance.