A Positive Externality or Spillover Benefit Occurs When

question 143

Multiple Choice

A positive externality or spillover benefit occurs when

• A)product differentiation increases the variety of products available to consumers.
• B)the benefits associated with a product exceed those accruing to people who consume it.
• C)a firm does not bear all of the costs of producing a good or service.
• D)firms earn positive economic profits.

Analyze the concept of cognitive dissonance and how it can lead to attitude or behavior change.

Know the historical and psychological significance of key social psychology studies and their researchers.

Understand how attitudes can be changed and how they guide behavior in various social contexts.

Grasp the mechanisms behind social influence, including conformity, informational social influence, and normative social influence.

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Definitions:

Accounts Receivable Balance

The combined total of receivables a business has from its customers for goods or services that have been consumed but remain unpaid.

Calendar Year

The period of time from January 1 to December 31 in the Gregorian calendar.

Sales Estimate

An approximation of the number or monetary value of sales that a company expects to achieve within a certain period.

Cash-Out Situation

A scenario where an investor or business needs to liquidate assets or securities to cover liabilities or other cash needs.