When Consumption or Production of a Product Has a Harmful

question 49

Multiple Choice

When consumption or production of a product has a harmful side effect that is borne by people not directly involved in the market exchange for that product, the side effect is called a(n) :

• A) marginal cost.
• B) indirect cost.
• C) additional cost.
• D) intrinsic cost.
• E) external cost.

---

Definitions:

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause, without the need for further conditioning.

Classical Conditioning

A method of learning where, through continuous pairing, a reaction initially induced by a second stimulus comes to be provoked by the first stimulus instead.

Extinction

In psychology, the gradual weakening and disappearance of a conditioned response when the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Discrimination

Discriminatory actions or attitudes against people belonging to distinct categories, mainly due to factors like ethnicity, age, or sexual orientation.