When a Positive Externality Is Present in an Industry

question 29

Multiple Choice

When a positive externality is present in an industry

• A)resources are overallocated.
• B)resources are underallocated.
• C)resources are efficiently allocated.
• D)there is insufficient information to determine.

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Definitions:

Conventional Morality

A stage in Kohlberg's theory of moral development where individuals' moral reasoning is based on societal norms and rules.

Moral Dilemmas

Situations in which individuals face conflicts between choosing two or more actions, where each option has moral implications.

Moral Reasoning

The process by which an individual thinks through ethical problems and arrives at principles of right and wrong.

Erik Erikson

Known for formulating a theory regarding the psychosocial growth of individuals, he is a distinguished psychoanalyst and developmental psychologist.