Externalities Are a Problem Only If

question 66

Multiple Choice

Externalities are a problem only if:

• A) decision makers do not take them into account
• B) the externalities impose a cost
• C) all firms are monopolistic
• D) all firms are perfectly competitive

Understand the concept of conformity and the factors influencing it.

Comprehend the role of social influence on behaviors and beliefs.

Identify the characteristics and impact of minority and majority opinions on group dynamics.

Recognize the psychological mechanisms behind conformity and dissent.

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Definitions:

Manipulating Others

The act of controlling or influencing someone in a cunning or deceitful way for personal gain.

Protective Mechanisms

Psychological strategies employed by individuals to defend against feelings of anxiety or threats to self-esteem, synonymous with defense mechanisms.

Basic Anxiety

A term in psychoanalysis describing feelings of insecurity and inadequacy arising from interpersonal relationships.

Child Security

The sense of safety, stability, and protection that a child feels, which is crucial for their emotional and psychological development.