If a Negative Externality Were Present in a Market,the Social

question 73

Multiple Choice

If a negative externality were present in a market,the social benefit curve would be:

• A) above the private demand curve.
• B) below the private demand curve.
• C) the same as the private demand curve.
• D) Cannot say without more information.

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Definitions:

Unity of Direction

A principle in management that suggests all parts of an organization should be aligned and moving towards the same objectives through coordinated efforts.

Henri Fayol

A French engineer and scholar who developed the general theory of business administration and is best known for his 14 principles of management.

Scalar Chain

A principle of organizational management that establishes a clear line of authority from the top ranks through to the bottom levels within an organization.

Scientific Management

Emphasises careful selection and training of workers, and supervisory support.