When a Positive Externality Exists, _______________________ and Thus _______________ Intervention

question 45

Multiple Choice

When a positive externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.

• A)external costs are necessarily greater than private costs; government
• B)social costs equal private costs; no government
• C)social costs are less than private costs; government
• D)social costs are greater than private costs; government

---

Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others, typically enhancing performance on well-practiced tasks.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds contradictory beliefs, ideas, or values at the same time.

Conformity

The act of changing one's behavior to match the responses or norms of a group, often as a result of real or imagined group pressure.

Obedience

A behavioral response to the instruction or command of an authority figure, often studied in social psychology.