Which of the following statements does not represent a market failure, a situation in which the pursuit of profit will not result in a net increase in consumer satisfaction?
A. The costs of pollution, groundwater contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties external to the economic exchange between buyer and seller.
B. Where there is no mechanism for pricing, for setting a value on public goods, there is no guarantee that the markets will result in the optimal satisfaction of the public interest in regard to public goods.
C. The pursuit of individual self-interest results in a worse outcome than would have occurred had the behavior of the parties involved in the economic exchange been coordinated through cooperation or regulation rather than mere competition.
D. Situations in which externalities have been internalized result in an equilibrium in the exchange price between true costs and benefits.
Answer: D
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According to the text, the strategic planning process provides a formal structure in which managers will
A. formulate best- and worst-case scenarios. B. manage relationships with government and society. C. evaluate the strategic plan that is prepared by staff at company headquarters. D. implement strategies. E. set corporate objectives.
Which nonquantitative forecasting approach asks each member of the sales force for his or her best estimate of sales for their individual territories over the coming year?
A. incremental productivity method B. generalist sales forecast C. survey of sales intentions D. sales force composite E. equalized workload method
As Facebook and other social media sites grow in users and popularity
a. There has been wide agreement that the expectation of privacy in those sites is nonexistent. b. The sites have gotten more and more protective of their user's information. c. Many user's have been unhappy with the privacy policies of the sites. d. The sites have eliminated privacy policies as they were the source of too many lawsuits.
Colvin Enterprises purchased a depreciable asset on October 1, Year 1 at a cost of $100,000. The asset is expected to have a salvage value of $20,000 at the end of its five-year useful life. If the asset is depreciated on the double-declining-balance method, the asset's depreciation expense in Year 2 will be:
A. $54,000 B. $90,000 C. $36,000 D. $16,000 E. $42,000