Author Question: Externalities are A) always positive, never negative. B) a blessing in disguise in ... (Read 41 times)

Mollykgkg · **on:** Jul 20, 2018

Externalities are

A) always positive, never negative.

B) a blessing in disguise in inflationary times.

C) an inevitable by-product of social responsibility.

D) unintended side-effects.

Question 2

Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when

A) there is an imbalance of knowledge between buyer and seller.

B) business would be an inept custodian of public values.

C) firms are unwilling or simply refuse to maximize profits.

D) corporate culture promotes dysfunctional social relations.