Which of the Following Is an Example of a Negative

question 176

Multiple Choice

Which of the following is an example of a negative externality?

• A) There is an increase in injuries to pedestrians caused by accidents resulting from electronic billboards distracting drivers.
• B) The opening of a new shopping mall increases the business of nearby restaurants.
• C) A consumer pays a higher price than another consumer does for the same product.
• D) Consumers pay a sales tax in addition to the price of a product.

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Definitions:

Overreward Inequity

A perception that one is receiving more rewards in comparison to their input or efforts, which can lead to feelings of guilt or discomfort.

Maslow's Needs Hierarchy

A theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy from most to least pressing: physiological, safety, love/belonging, esteem, and self-actualization.

Equity Theory

A theory in social psychology and organizational behavior that explains how individuals perceive fairness in distribution of resources within interpersonal relationships, leading to satisfaction or dissatisfaction.

Motivational Force

The internal or external stimulus that prompts a person towards taking action or pursuing goals.