A Positive Externality Results When

question 155

Multiple Choice

A positive externality results when

• A) economists are sure that a good or service provides benefits to consumers.
• B) someone pays for a good or service even though she is not directly affected by the production or consumption of it.
• C) when people who live in one country benefit from the production of a good or service that occurs in another country.
• D) people who are not directly involved in producing or paying for a good or service benefit from it.

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Definitions:

Mutual-regulation Model

A theory suggesting that individuals in relationships manage and adjust their emotions and behaviors in response to each other.

Erikson

Refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial stages of human development.

Development

The process of growth and change that humans go through over their lifetime, including physical, mental, emotional, and social aspects.

Toddlerhood

The stage of child development that occurs from approximately 1 to 3 years of age, characterized by rapid growth in motor skills, language, and independence.