Under What Circumstances Will People or Firms "Internalize Externalities

question 124

Multiple Choice

Under what circumstances will people or firms "internalize externalities"?

• A) whenever spillover costs and/or benefits are created
• B) whenever the private marginal costs and private marginal benefits are calculated more carefully
• C) whenever less consideration is given to others
• D) whenever responsibility for the consequences of actions is assigned to the acting party.

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Definitions:

Mental Test

A psychological test that measures mental functions, abilities, and capacities.

SAT

A uniform exam extensively employed for university entry across the United States, evaluating abilities in reading, writing, and mathematics.

Psychological Laboratories

Specialized settings equipped for conducting research and experimental studies in psychology and cognitive sciences.

Language Ability

Refers to the capacity to understand, produce, and use language effectively for communication.