Julie Has a Fear of Riding in Elevators

question 5

Multiple Choice

Julie has a fear of riding in elevators. She goes to a therapist who first has her stand outside an elevator with him, and he talks to her until she is calm. Then, the two of them stand outside the elevator with the doors open. Then, they stand in it but do not ride in it. Finally, they ride in the elevator. At each stage, the therapist waits until Julie is completely relaxed before moving on to the next stage. This is an example of ________.

• A) transactional analysis
• B) aversive conditioning
• C) systematic desensitization
• D) operant conditioning

Understand the production and overproduction of external benefits in a free market system.

Distinguish between public goods, private goods, and the characteristics of each.

Define and identify external benefits and their impact on third parties.

Describe different forms of business organizations and their characteristics.

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Definitions:

Perfectly Inelastic

A situation in market demand or supply where the quantity demanded or supplied does not change regardless of changes in price.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a state of balance in the market.

Equilibrium Quantity

The amount of goods or services supplied that is exactly equal to the amount of goods or services demanded at a particular price level.

Demand

The total amount of a product or service that consumers are willing and able to purchase at various price levels at a given time.