When External Costs Exist

question 81

Multiple Choice

When external costs exist,

• A)There is government failure.
• B)Market prices do not convey the full costs of production.
• C)The market achieves the optimal mix of output.
• D)Private costs are greater than social costs.

---

Definitions:

Quality Circles

Groups of workers who meet regularly to discuss and solve problems affecting the quality of their work.

Psychological Safety

A belief or sense within a group or organization that one can speak up, offer ideas, and ask questions without fear of punishment or ridicule.

Employee Involvement

The practice of involving staff in the decision-making processes of an organization to improve commitment, productivity, and job satisfaction.

Polarization

The process by which the differences between two opposing sides or viewpoints become more extreme, leading to a greater division within a group or society.