In General,an Externality Is Created When

question 93

Multiple Choice

In general,an externality is created when

• A)people are affected (other than by price)by a transaction which they were not part of.
• B)firms produce a product of low quality and consumers don't like it.
• C)firms have to pay for pollution the environment.
• D)the government subsidizes education.

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Definitions:

Pleasure Principle

A concept in psychoanalytic theory referring to the drive to seek immediate gratification of needs and desires, avoiding pain or discomfort.

Psychoanalytic

Pertaining to the theory and therapy developed by Sigmund Freud, which focuses on unconscious motivations and conflicts as drivers of human behavior.

Between-Family Difference

Variation in characteristics, such as socio-economic status, values, practices, etc., observed between different families.

Child-Rearing Attitudes

The beliefs, practices, and behaviors adopted by parents and guardians in the upbringing of children.