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What Are External Failure Costs? Please Provide Two Examples of Types

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What are external failure costs? Please provide two examples of types of external failure costs.


Definitions:

Spontaneous Recovery

A phenomenon where previously extinguished responses reappear after a period of time without exposure to the conditioned stimulus.

Placebo Remission

The phenomenon where a patient's symptoms are alleviated without any therapeutic intervention, attributed to the individual's belief in the treatment's efficacy.

Behaviour Therapy

A type of psychotherapy that focuses on changing unwanted behaviors through various techniques, such as conditioning.

Insight Therapy

A psychological treatment aimed at increasing a person’s awareness of underlying motives and defenses.

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