If a Market Exchange Imposes Costs on a Party Not

question 29

Multiple Choice

If a market exchange imposes costs on a party not involved in the transaction, the cost is called a

• A) positive externality.
• B) negative externality.
• C) public good.
• D) tragedy of the commons.

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Definitions:

Biological

Pertaining to the science of life or living matter in all its forms and phenomena, especially with reference to origin, growth, reproduction, structure, and behavior.

Learning Perspective

A psychological viewpoint that emphasizes the effects of experience on behavior, focusing on learning processes.

Cognitive Perspective

A psychological viewpoint that focuses on how people think, understand, and know about the world, emphasizing the importance of mental processes in understanding behavior.

Sociocultural Perspective

A psychological approach that emphasizes the influence of societal and cultural factors on individual behavior and mental processes.