If There Are External Benefits or Positive Externalities Associated with the Consumption

question 95

Multiple Choice

If there are external benefits or positive externalities associated with the consumption of a good or service:

• A)the private demand curve will overestimate the true demand curve.
• B)the private demand curve will underestimate the true demand curve.
• C)consumers will be willing to pay for all these benefits in private markets.
• D)the market demand curve will be the vertical summation of the individual demand costs.

---

Definitions:

Humanistic Therapy

A form of psychotherapy that emphasizes personal growth and the achievement of maximum potential by focusing on the individual's unique self and subjective experience.

Psychological Problems

Mental or behavioral patterns that can cause significant distress or impairment in personal functioning.

Optimal Level

The most favorable or advantageous degree of intensity or concentration for a specific function or activity.

Transference

A phenomenon in psychoanalysis where patients project feelings, attitudes, or desires onto their therapist, confusing the therapist with figures from their past.