A Positive Externality Is

question 60

Multiple Choice

A positive externality is:

• A) an external benefit.
• B) an external cost that affects the buyer.
• C) an external cost that affects the seller.
• D) a benefit that affects the buyer, not the seller.

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Definitions:

Higher-order Needs

Advanced human needs in Maslow's hierarchy, including esteem and self-actualization, beyond basic physiological and safety requirements.

Esteem

A respect and admiration, typically for a person, that results from their achievements or qualities.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone. It is often viewed as the pinnacle of psychological development.

Hawthorne Studies

A series of studies conducted in the early 20th century that examined how different work conditions affected employee productivity and concluded that workers were more motivated by attention and social factors than physical conditions.