Negative Externalities Occur When One Person's Actions

question 198

Multiple Choice

Negative externalities occur when one person's actions

• A) cause another person to lose money in a stock market transaction.
• B) cause his or her employer to lose business.
• C) reveal his or her preference for foreign-produced goods.
• D) adversely affect the well-being of a bystander who is not party to the action.

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Definitions:

Dodo Bird Verdict

A metaphor stemming from Alice in Wonderland and used in psychology to suggest that different forms of therapy are equally effective.

Psychotherapy

A treatment method for mental health conditions involving talking with a mental health professional to explore thoughts, feelings, and behaviors to achieve desired change.

Hostile Attitude

Exhibiting aggression or animosity towards others or towards specific ideas.

DSM-IV-TR

The fourth edition, text revision, of the Diagnostic and Statistical Manual of Mental Disorders, a guide used by clinicians to diagnose mental disorders.