When an Economic Activity Generates a Benefit for Those Who

question 20

Multiple Choice

When an economic activity generates a benefit for those who are not directly involved in it a(n) _____ is said to exist.

• A)competitive advantage
• B)marginal benefit
• C)external benefit
• D)tragedy of commons problem.

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Definitions:

Incremental Change

Gradual, step-by-step modifications made over time to improve processes or systems.

Discontinuous Change

Abrupt, radical transformation in an organization or system that fundamentally alters its structure, processes, or operations.

Governed By Habit

Actions or behaviors that are regularly followed by an individual or organization due to their habitual nature, rather than conscious decision-making.

Re-create Institutions

The process of fundamentally redesigning and reforming established organizations or societal structures.