An Externality Is

question 15

Multiple Choice

An externality is:

• A) always a benefit to the recipient.
• B) always a detriment to the recipient.
• C) an activity that occurs in a business which is unknown to management.
• D) unintended benefits or costs imposed on third parties as a result of economic activity.
• E) an act, caused by a firm located in this country, which has an effect on a person in a foreign country.

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Definitions:

Therapeutic Alliance

The relationship between therapist and client that develops as a warm, caring, accepting relationship characterized by empathy, mutual respect, and understanding.

Psychotherapy

Therapy for mental disorders in which a person with a problem talks with a psychological professional.

Bilateral Anterior Cingulotomy

Psychosurgical technique in which an electrode wire is inserted into the anterior cingulate gyrus, with the guidance of magnetic resonance imaging, to destroy a very small portion of that brain area with electric current.

Major Depression

A mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.