External Failure Activities

question 105

Multiple Choice

External failure activities:

• A) seek to prevent defects in the products or services being produced.
• B) inspect inputs and attributes of individual units of products or services to detect whether they conform to specifications or customer expectations.
• C) correct defective processes or products and services before they are delivered to customers.
• D) are activities required after defective products or services are delivered to customers.

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Definitions:

Minimum Wage

The lowest legally enforced wage that employers can pay their employees, intended to ensure a minimum standard of living for workers.

Market Equilibrium

A state in a market where the quantity supplied equals the quantity demanded, resulting in no incentive for price changes.

Excess Supply

A situation in which the quantity of a good or service supplied is greater than the quantity demanded at the current price.

Rent Control

Government laws or policies that limit the amount landlords can charge for leasing residential property to protect tenants from steep rent increases.