Policies Aimed at Reducing an Externality Sometimes Have Unintended Consequences

question 73

True/False

Policies aimed at reducing an externality sometimes have unintended consequences.

---

Definitions:

Status Generalization

A process through which differences in members’ status characteristics lead to different performance expectations and, hence, affect patterns of interaction in groups; the tendency for a member’s status inside a group to reflect his or her status outside that group.

Self-fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.

Diffuse Status Generalization

The process by which individuals' status characteristics in one domain influence expectations and interactions in unrelated domains.

Jury Foreman

The member of a jury selected to lead the group, speak on its behalf, and often deliver the verdict to the court.