When Market Activity Generates a Negative Externality, the Level of Output

question 172

True/False

When market activity generates a negative externality, the level of output in the market equilibrium is lower than the socially optimal level.

---

Definitions:

Respondent Behaviors

Reactions that are automatic responses to a specific stimulus, as opposed to behaviors learned through consequence, such as in operant conditioning.

Desensitization

The process of reducing sensitivity towards a stimulus, often used in therapy to help individuals cope with phobias or anxiety.

Imitation

The action of using someone or something as a model and attempting to replicate their behavior or characteristics.

Violence-Viewing Effect

The violence-viewing effect refers to the potential impact of watching violence in media, such as increased aggression or desensitization to violence, particularly in children.