A User Cost of Zero Implies That

question 134

Multiple Choice

A user cost of zero implies that

• A) a firm will extract all of a resource in the present.
• B) a firm will extract resources at a faster rate than if the user cost was positive.
• C) a firm will extract resources at a faster rate than if the user cost was negative.
• D) the price of the resource will not change.

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Definitions:

Desensitization

Desensitization is a psychological process through which an individual is made less likely to feel extreme responses towards a stimulus, often used in the treatment of phobias and anxieties.

Systematic Desensitization

A method in behavioral therapy aimed at decreasing fear and anxiety by slowly introducing the individual to the object or situation that causes their fear.

Overgeneralization

A cognitive distortion where an individual concludes a general rule or pattern from a single event or a small number of events.

Free Association

A psychoanalytic technique where the patient speaks freely about their thoughts, memories, and feelings, revealing the unconscious processes.