A Cost Imposed on People Other Than the Consumers of a Good

question 42

Multiple Choice

A cost imposed on people other than the consumers of a good or service is a:

• A) price floor.
• B) negative externality.
• C) positive externality.
• D) price externality.

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Definitions:

Physical Stimulus

Any external factor that can provoke a physical response or reaction from a biological organism.

Transduction

The process of converting one form of energy into another, as in sensory systems where physical stimuli are converted into neural signals.

Sensory Coding

The process through which the nervous system represents the qualities of the incoming stimulus— whether auditory or visual, for example, or whether a red light or a green one, a sour taste or a sweet taste.

Neural Signal

Electrical or chemical signals transmitted by neurons to communicate information throughout the brain and nervous system.