A Negative Externality

question 29

Multiple Choice

A negative externality

• A)is a payment received to parties not involved in the production or consumption of a good.
• B)is a cost borne to parties not involved in the production or consumption of a good.
• C)results from the absence of well - defined property rights.
• D)is a cost borne to parties not involved in the production or consumption of a good and results from the absence of well - defined property rights.

---

Definitions:

Id

According to Freud, the psychological force that produces instinctual needs, drives, and impulses.

Rational Thinking

The process of thinking clearly, logically, and applying objective judgment based on facts and reason, rather than emotions or irrational beliefs.

Instinctual Needs

The fundamental biological and psychological needs driving behavior, such as needs for food, safety, and attachment.

Moral Standards

Principles or rules of behavior that individuals and societies consider to be ethically right or acceptable, guiding conduct in various situations.