When a Negative Externality Exists in a Market, the Cost

question 170

Multiple Choice

When a negative externality exists in a market, the cost to producers

• A)is greater than the cost to society.
• B)will be the same as the cost to society.
• C)will be less than the cost to society.
• D)will differ from the cost to society, regardless of whether an externality is present.

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Definitions:

Social Psychology

The scientific study of how individuals think, influence, and relate to one another within a societal context.

Developmental Psychology

Developmental Psychology is the scientific study of how and why human beings change over the course of their life, from infancy through to old age, focusing on psychological processes and development.

Clinical Psychology

A branch of psychology focused on diagnosing and treating mental illness, emotional disturbance, and dysfunctional behavior.

Minimal Risk

A situation where the probability and magnitude of harm or discomfort anticipated in the research are not greater than those ordinarily encountered in daily life or during routine physical or psychological examinations.