When the Costs of an Action Are Not Fully Borne

question 121

Multiple Choice

When the costs of an action are not fully borne by the two parties engaged in a transaction, this is called a(n)

• A) externality.
• B) equilibrium.
• C) property right.
• D) internal cost.

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Definitions:

Flooding

Confronting your worst fear head-on, all at once.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a pause, without new learning sessions.

Generalization

Drawing broad conclusions from specific instances; in psychology, it refers to the process of applying findings from a study to larger population segments.

Flooding

A psychological technique used in therapy to help individuals face their fears by exposing them to high levels of emotional stimuli.