When Negative Externalities Are Present in a Market

question 347

Multiple Choice

When negative externalities are present in a market,

• A)producers will be affected but consumers will not.
• B)producers will supply too much of the product.
• C)demand will be too high.
• D)the market will still maximize total benefits.

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Definitions:

Nativist Theory

A theory in psychology that suggests that certain skills or abilities are "native" or hard-wired into the brain at birth.

Ethological Perspective

A viewpoint in psychology that emphasizes the biological and evolutionary basis for behavior, focusing on how behavior adapts and evolves in natural contexts.

Cognitive Equilibrium

A state of mental balance in which a person's existing knowledge, beliefs, and skills are consistent with their experiences and information from the environment.

Schemas

Mental frameworks that help individuals organize and interpret information, influencing cognition and perception.