If a Positive Externality Exists,__________ for the Socially Optimal Output

question 7

Multiple Choice

If a positive externality exists,__________ for the socially optimal output to be reached.

• A) supply needs to decrease
• B) demand needs to increase
• C) demand needs to decrease
• D) a and c
• E) none of the above

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Definitions:

Karen Horney

A psychoanalyst known for her theory of neurotic needs and her work on the psychology of women.

Sigmund Freud

An Austrian neurologist best known for founding psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology, emphasizing the importance of the individual psyche and the personal quest for wholeness.

Carl Rogers

An influential American psychologist who founded client-centered therapy and emphasized the importance of the self and unconditional positive regard.