If There Are External Benefits Associated with the Consumption of a Good

question 118

Multiple Choice

If there are external benefits associated with the consumption of a good or service,

• A) the private demand curve will overestimate the true demand curve.
• B) the private demand curve will underestimate the true demand curve.
• C) consumers are paying for all these benefits in private markets.
• D) the market demand curve will be the vertical summation of the individual demand curves.

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Definitions:

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Human Relations Techniques

Approaches and methods used to improve interpersonal relationships, worker satisfaction, and productivity in the workplace.

Human Relations Movement

An approach to management and organizational behavior emphasizing the importance of social relations and employee well-being.

Unionization

The process of organizing the employees of a company into a labor union to seek collective bargaining rights and protect their interests.