When a Positive Externality Is Present in a Market, Consumers

question 23

Multiple Choice

When a positive externality is present in a market, consumers will purchase _______ the socially optimal quantity.

• A)more than
• B)the same amount as
• C)zero, unlike
• D)less than

Understand the methods of accounting for uncollectible receivables.

Analyze and prepare adjusting entries for bad debt expense using the aging method and percentage of sales or receivables.

Identify and journalize transactions under the direct write-off method of accounting for uncollectible receivables.

Understand the concept and calculation of interest, maturity value, and terms related to notes receivable.

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Definitions:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the influence of consequences on behavior.

Shaping

A method of operant conditioning by which successive approximations toward a desired behavior are reinforced.

Conditioned Stimulus

A stimulus that initially has no inherent value but acquires significance and the ability to elicit a response through its association with an unconditioned stimulus.