Externalities Are Costs to Society, Which Have an Impact on Parties

question 45

True/False

Externalities are costs to society, which have an impact on parties not directly involved into a particular economic transaction.

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Definitions:

Personal Dispositions

Individual characteristics or tendencies that influence behavior, thoughts, and emotions in various situations.

Functional Autonomy

A principle in psychology where behaviors continue to serve a purpose independent of their original motivator.

Healthy Adults

Individuals who have reached maturity not only in biological terms but also exhibit psychological well-being and appropriate coping mechanisms.

Psychological Forces

Internal or external factors that influence an individual's mental states and behaviors.