All Externalities

question 15

Multiple Choice

All externalities:

• A)are harmful to society and create costs external to the decision maker.
• B)are beneficial to society and create benefits external to the decision maker.
• C)create either a cost or benefit to a person other than the person who caused them.
• D)are addressed by the government through taxation.

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Definitions:

Deindividuation

A psychological state where an individual loses their self-awareness and sense of individuality, often leading to disinhibited and impulsive behavior, usually in group settings.

Detached Responsibility

A psychological state where an individual feels separated from the consequences of their actions, often reducing moral accountability.

Authority Figure

An individual who holds power or influence over others, often due to a position of trust, knowledge, or responsibility.

Social Facilitation

A psychological phenomenon where an individual's performance is improved when in the presence of others either due to observed or implied judgement.