Hiroko Watches Shows That Display and Encourage Being Friendly and Helpful

question 145

Multiple Choice

Hiroko watches shows that display and encourage being friendly and helpful to other people. After watching this, Hiroko is more likely to:

• A) act friendly.
• B) act aggressively.
• C) be depressed.
• D) act the same way she always has.

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Definitions:

Internalized

This term generally refers to the absorption of external effects or costs by the decision-maker, often in the context of environmental economics.

Coase Theorem

An economic theory stating that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be positive or negative.

External Costs

Costs generated by a production or consumption activity that are not borne by the producer or consumer but by society at large.