______ Is a Defense Mechanism That Involves Offsetting a Real

question 30

Multiple Choice

______ is a defense mechanism that involves offsetting a real or fancied defect or inferiority by creating a real or fancied achievement or superiority.

• A)Projection
• B)Displacement
• C)Reaction formation
• D)Compensation

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Definitions:

Negative Externality

A negative effect or cost suffered by a third party due to an economic transaction they were not involved in.

Socially Optimal Price

The price of a good or service that reflects the true cost to society, accounting for externalities and ensuring allocative efficiency.

Transaction Costs

Expenses incurred when buying or selling goods and services, which can include fees, taxes, and other costs.

Externality Problem

A situation where the actions of individuals or businesses result in benefits or costs to others that are not reflected in market prices.