Markets Tend to Underallocate Resources to the Production of a Good

question 335

Multiple Choice

Markets tend to underallocate resources to the production of a good when

• A) there are negative externalities.
• B) there are positive externalities.
• C) there are public goods produced.
• D) equilibrium occurs.

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Definitions:

High Power Distance

A cultural dimension where there is acceptance of unequal power distribution within societies or organizations.

Power Distance

This concept refers to the extent to which less powerful members of institutions and organizations expect and accept that power is distributed unequally.

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A value or perspective that emphasizes compassion, caring, and concern for the well-being of others.