When an Externality Is Present, the Market Equilibrium Is

question 116

Multiple Choice

When an externality is present, the market equilibrium is

• A)efficient, and the equilibrium maximizes the total benefit to society as a whole.
• B)efficient, but the equilibrium does not maximize the total benefit to society as a whole.
• C)inefficient, but the equilibrium maximizes the total benefit to society as a whole.
• D)inefficient, and the equilibrium does not maximize the total benefit to society as a whole.

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Definitions:

Moral Judgment

The process of determining the moral correctness or wrongness of an action, often based on ethical principles and values.

Acceptable Conduct

The standards of behavior considered appropriate and acceptable within a particular context, such as a workplace or social setting.

Ethics

A set of standards of conduct and moral judgments that help determine right and wrong behaviour.

Progressive Discipline

A step-by-step process designed to give an employee with performance issues the opportunity to improve.