A Cost Imposed on People Other Than the Consumers of a Good

question 42

Multiple Choice

A cost imposed on people other than the consumers of a good or service is a:

• A) price floor.
• B) negative externality.
• C) positive externality.
• D) price externality.

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Definitions:

Save Face

Actions taken to preserve one's reputation or dignity in the face of embarrassing or compromising situations.

Ethical Decisions

Choices made based on moral principles and values, often reflecting considerations of what is right and fair.

Escalation of Commitment

A psychological pattern where individuals or groups continue to invest in a decision despite facing increasingly negative outcomes or feedback.

Perceptual Biases

Cognitive biases that influence how we perceive and interpret information about people, objects, or events, often leading to distorted judgments.