If an Organization Allows Workers to Get Rewards Such as Stock

question 6

Multiple Choice

If an organization allows workers to get rewards such as stock options due to illegal and unethical means,this reflects a failure of which policy choice?

• A) Internal alignment
• B) Efficiency
• C) Employee contributions
• D) Management

---

Definitions:

Pigouvian Tax

A tax levied on activities that generate negative externalities, intended to correct the market outcome by internalizing the external costs.

Socially Optimal Level

The level of production or activity where the social benefits of consuming a good equal the social costs of producing it, often considered ideal from a societal perspective.

Per-unit Subsidy

A financial aid provided by the government for each unit of a product produced or sold.

Private Market-clearing

The process by which supply and demand balance out at a price where the quantity supplied equals the quantity demanded in a private marketplace, without excess surplus or shortage.