An Externality Is an Example of

question 81

Multiple Choice

An externality is an example of

• A)a corrective tax.
• B)a tradable pollution permit.
• C)a market failure.
• D)Both a and b are correct.

Recognize the role of government policy in economic theory, particularly in response to recessions and inflation.

Understand the significance of investment according to Keynesian economics.

Analyze the relationship between interest rates, inflation, and the money supply in economic policy making.

Evaluate the assumptions underlying the classical and Keynesian views on wage and price flexibility.

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Definitions:

Congruence

A state of agreement or harmony between individuals, actions, values, or organizational components.

Organization's Members

Individuals who belong to and contribute to a collective entity, such as a company or society, through their roles, responsibilities, and efforts.

360-degree System

A feedback mechanism that involves collecting performance assessments from an employee’s supervisors, peers, subordinates, and sometimes customers.

Bottom-line Performance

Refers to the net income, profit, or the overall financial health of an enterprise as the ultimate measure of its success.