Exhibit 30-5 ​ Refer to Exhibit 30-5. If a Positive Externality Exists, Then

question 16

Multiple Choice

Exhibit 30-5 ​

Refer to Exhibit 30-5. If a positive externality exists, then curve __________ represents the marginal social benefit curve and the area __________ represents the market failure.

• A)2; BDC
• B)1; ABC
• C)3; ABC
• D)2; ABC
• E)1; BDC

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Definitions:

Frustration Theory

A psychological theory suggesting that frustration, resulting from blocked goals, can lead to aggressive behavior.

Sequential Theory

A theory suggesting that understanding and behavior result from sequences of stimuli and responses, often emphasizing the importance of order in learning processes.

Extinction Contrast Effect

The phenomenon wherein the cessation of a previously reinforced behavior is accelerated when an alternative behavior continues to be reinforced.

Nonreward

A situation where an expected reward is not given, leading to extinction of the conditioned response over time.