Which of the Following Leads to an Underallocation of Resources

question 198

Multiple Choice

Which of the following leads to an underallocation of resources to a specific economic activity?

• A) External costs
• B) External benefits
• C) Marginal costs
• D) Effluent benefits

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Definitions:

Sustainability

Refers to the practice of meeting the needs of the present without compromising the ability of future generations to meet their own needs, often focusing on environmental, social, and economic balance.

Production Levels

The quantity of goods or services that are produced within a given timeframe, reflecting a company's output capacity.

Consumer Demand

The desire and willingness of consumers to purchase goods and services at given prices.

CSR Programs

Corporate Social Responsibility programs, which are initiatives taken by companies to assess and take responsibility for their effects on environmental and social wellbeing.