It Is True of Externalities That They

question 68

Multiple Choice

It is true of externalities that they

• A)are always detrimental.
• B)are always beneficial.
• C)arise when all costs, social and private, are included in production cost.
• D)cause the price system to misallocate resources.

---

Definitions:

Law of Effect

A psychological principle suggesting that behaviors followed by positive outcomes are likely to be repeated, while those with negative outcomes are not.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause, without the need for further conditioning.

Rational Appeal

A persuasive technique that uses logical arguments and factual evidence to convince the audience.

Emotional Appeal

Emotional appeal is a persuasive technique that attempts to provoke an emotional response in the audience to influence their attitudes, beliefs, or behavior.