Explain What Externalities Are and Give an Example

question 40

Essay

Explain what externalities are and give an example.

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Definitions:

Cognitive Appraisal

The process of evaluating a situation or event for its significance to personal wellbeing, influencing emotional and behavioral responses.

Lazarus Theory

A concept in psychology that suggests emotions are a result of thought processes, and stress arises from an appraisal of a situation that impacts one's well-being.

Emotional Reactions

Responses that involve affective components such as feelings, moods, and attitudes triggered by stimuli or events.

Display Rules

Cultural rules that dictate how emotions should generally be expressed and when and where their expression is appropriate.