Compare Two Situations

question 223

Multiple Choice

Compare two situations. (A) A firm is not legally responsible for damages that result from air pollution caused by its production of steel. (B) A firm is legally responsible for damages that result from its production of steel. Ronald Coase argued that

• A) bargaining between the firm and the victims of the air pollution caused by the firm will result in little reduction of pollution in either situation (A) or (B) because the firm has greater economic and political power than the victims.
• B) bargaining between the firm and the victims of the air pollution caused by the firm would lead to a greater reduction in pollution in situation (A) than situation (B).
• C) bargaining between the firm and the victims of the air pollution caused by the firm would lead to a smaller reduction in pollution in situation (A) than situation (B).
• D) bargaining between the firm and the victims of the air pollution caused by the firm would lead to an equal reduction in pollution in situation (A) and situation (B).

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Definitions:

Herzberg's Two Factor Theory

A motivational theory suggesting that employee satisfaction and dissatisfaction are influenced by two independent sets of factors: hygiene factors and motivators.

Motivate Employees

Strategies and practices designed to increase staff enthusiasm and drive, encouraging them to be more engaged and productive.