When a Policy Succeeds in Giving Buyers and Sellers in a Market

question 61

Multiple Choice

When a policy succeeds in giving buyers and sellers in a market an incentive to take into account the external effects of their actions, the policy is said to

• A)equalize private value and private cost.
• B)equalize private cost and external cost.
• C)externalize the actions of the buyers and sellers.
• D)internalize the externality.

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Definitions:

Organizational Diagnosis

An assessment process aimed at understanding an organization's functioning, identifying areas for improvement, and devising strategies for enhanced performance.

Survey Feedback

A method of gathering data and insights from respondents about various topics, which is then analyzed and used to inform decisions or improvements.

Large-Scale

Referring to extensive or broad in scope, affecting a large area or a significant number of people.

Long-Term Change Programs

Initiatives or projects aimed at implementing significant changes within an organization or community over an extended period.