Professor Ashmore Approaches Questions About Human Behavior from a Perspective

question 197

Multiple Choice

Professor Ashmore approaches questions about human behavior from a perspective which emphasizes how people reason, remember, and understand language. It is most likely that she accepts the _____________ perspective.

• A) biological
• B) behavioral
• C) cognitive
• D) sociocultural

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Definitions:

Subsidy

Financial support extended by the government to a sector, industry, or individual, intended to promote economic and social policy objectives.

Negative Externality

A cost imposed without compensation on third parties by the production or consumption of sellers or buyers. Example: A manufacturer dumps toxic chemicals into a river, killing fish prized by sports fishers. Also known as an external cost or a spillover cost.

Spillover Cost

A cost incurred by someone who is not a direct participant in a transaction, often referring to negative externalities resulting from economic activities.

Allocative Efficiency

occurs when resources are distributed in a manner that results in the optimal combination of goods and services produced to match consumer preferences.