A Negative Externality Will Cause a Private Market to Produce

question 476

Multiple Choice

A negative externality will cause a private market to produce

• A)less than is socially desirable.
• B)more than is socially desirable.
• C)exactly the quantity that is socially desirable.
• D)less than the same market would produce in the presence of a positive externality.

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Definitions:

False Consensus Hypothesis

The tendency to overestimate the extent to which others share our beliefs, attitudes, and behaviors.

Fundamental Attribution Error

A cognitive bias in social psychology where people underestimate situational influences and overestimate dispositional influences on others' behavior.

Save Face

The act of striving to maintain one's dignity, honor, or reputation in the face of embarrassment or shame.

Channel Factors

Channel factors refer to situational or environmental elements that significantly influence the likelihood of behavior change by facilitating simple and small modifications in the environment.