The Net Increase to Total Surplus When a Positive Externality

question 74

Multiple Choice

The net increase to total surplus when a positive externality is internalized is due to:

• A)the transfer of surplus from those affected by the externality to the consumer.
• B)the increased number of units bought and sold in the market.
• C)the transfer of surplus from the consumer to those affected by the externality.
• D)None of these statements is true.

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Definitions:

Interpersonal Relations

The connections and interactions between individuals, often examined in the context of social and work environments.

Organizational Policies

The rules, guidelines, and procedures established by an organization to regulate its operations and decision-making processes.

Herzberg's Two-Factor Theory

A motivation theory which suggests that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction.

Satisfier Factor

Refers to job factors that increase job satisfaction without necessarily diminishing job dissatisfaction when absent, as proposed by Herzberg in his Two-Factor Theory of motivation.