When Marginal Private Benefit Is Equal to Marginal Private Cost

question 175

Multiple Choice

When marginal private benefit is equal to marginal private cost,

• A)the activity in question generates no negative externality.
• B)all negative externalities have been internalized.
• C)all positive externalities have been internalized.
• D)all of the above
• E)a or b

---

Definitions:

Deferred Imitation

The ability to reproduce a behavior observed at an earlier time, even in the absence of the original model or stimuli.

A-not-B Error

A cognitive error observed in infants, where they repeatedly reach for an object at a previous location (A) where it was found, despite seeing it moved to a new location (B).

Hidden Objects

Items that are not easily observable and require effort to be found, often used in games and psychological tests to assess perception and attention.

Incentive

A reward or stimulus that motivates or encourages an individual to perform an action or exhibit a particular behavior.