There Is an Externality Present Only When

question 13

Multiple Choice

There is an externality present only when

• A) private costs diverge from social costs.
• B) private benefits diverge from social benefits.
• C) private costs or benefits diverge from social costs or benefits.
• D) private costs equal social costs.

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Definitions:

Adolescence

Period in development between the onset of puberty and adulthood. It usually begins between 11 and 13 years of age.

Freud

Sigmund Freud was an Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Id

In psychology, a part of the mind in which innate instinctive impulses and primary processes are manifest.

Immediate Needs

Urgent requirements or priorities that must be addressed or fulfilled without delay.