When a Transaction Between a Buyer and Seller Directly Affects

question 12

True/False

When a transaction between a buyer and seller directly affects a third party, the effect is called an externality.

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Definitions:

Groups

Collections of individuals who interact with one another, share similar characteristics, and collectively have a sense of unity or identity.

Investment Model

A theory in social psychology that examines how commitment in relationships is affected by satisfaction, quality of alternatives, and investments made into the relationship.

Tempting Alternatives

Enticing options that may distract from a primary choice or decision.

Committed

Describes being dedicated or bound to a cause, activity, or goal, demonstrating loyalty or obligation.