What Makes an Externality Positive Rather Than Negative

question 151

Multiple Choice

What makes an externality positive rather than negative?

• A) The deadweight loss is greater than zero,not less.
• B) The socially optimal quantity exchanged is less,not greater,than at market equilibrium.
• C) The externality affects the demand curve rather than the supply curve.
• D) The externality benefits third parties rather than harming them.
• E) The externality becomes internalized without government action.

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Definitions:

Operational Planning

The process of planning strategic goals and objectives to tactical goals and objectives. It describes milestones, conditions for success, and explains how, or what portion of, a strategic plan will be put into operation during a given operational period.

Organizational Goals

These are the objectives a company aims to achieve, which determine its strategic direction and actions.

Subordinates

Employees or team members who are ranked lower in an organizational hierarchy and report to a superior.

Recruitment

The process of identifying, attracting, interviewing, selecting, and hiring employees for an organization.