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A Desire to Perform a Behavior to Obtain an External

question 144

Multiple Choice

A desire to perform a behavior to obtain an external reward or avoid punishment is known as __________


Definitions:

External Costs

Costs incurred by society as a whole due to economic activities but not reflected in the market price or borne by the producer or consumer involved.

Pollution Abatement

Actions or measures taken to reduce, control, or eliminate pollution and its negative impacts on the environment.

Socially Optimal

A condition or output level where the social welfare is maximized, taking into account both the benefits to consumers and the costs to producers.

Marginal Benefit

The additional satisfaction or utility that an individual gains from consuming one more unit of a good or service.

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