One Method of Correcting for ____ Externalities Is to Create

question 123

Multiple Choice

One method of correcting for ____ externalities is to create a ____ to make sure the market accounts for all costs and benefits.

• A) market failure; tax
• B) negative; tax
• C) positive; mechanism
• D) positive; tax
• E) negative; free market

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Definitions:

Progressive Relaxation

A technique for achieving a deep state of calm by tensing and then relaxing all the major muscle groups in sequence.

Exposure

The process of reducing fear or anxiety by gradually and repeatedly introducing the feared object or situation.

Aversion Therapy

A behavioral treatment method that uses negative stimuli to reduce the appeal of undesirable habits or behaviors.

Operant Conditioning

The learning of voluntary behavior through the effects of pleasant and unpleasant consequences to responses.