An Externality

question 40

Multiple Choice

An externality

• A) is always either a negative or positive externality.
• B) could be either a negative or positive externality.
• C) can be a negative externality for one group of people and a positive externality for another.
• D) create market failures only when they are negative.

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Definitions:

Interpret Bad Events

The cognitive process of explaining and assigning meaning to negative occurrences or adversity.

Big Five Personality Traits

A theoretical model of personality that includes five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism, structuring human personality.

Sensation-Seeking

The trait of seeking varied, novel, complex, and intense sensations and experiences, and the willingness to take physical, social, legal, and financial risks for the sake of such experiences.

Cold Virus

A type of virus that is responsible for causing the common cold, characterized by respiratory symptoms like coughing and a runny nose.