If,after an Externality Is Corrected,the Equilibrium Price Rises and the Equilibrium

question 182

Multiple Choice

If,after an externality is corrected,the equilibrium price rises and the equilibrium quantity falls,the externality must have been a(n)

• A) external benefit.
• B) internal cost.
• C) external cost.
• D) positive externality.
• E) positional externality.

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Definitions:

Foot-In-The-Door

A psychological technique that involves getting a person to agree to a large request by first setting them up by agreeing to a modest request.

Fundamental Attribution Error

The tendency to overestimate personality or dispositional factors and underestimate situational influences when explaining the behavior of others.

Slacking Off

The act of reducing effort or avoiding work altogether.

Cognitive Dissonance

The psychological distress felt when an individual has two or more opposing beliefs, ideas, or values at the same moment.