While You Are Driving, You Make an Illegal Lane Change

question 839

Multiple Choice

While you are driving, you make an illegal lane change and see a flashing light behind you.You immediately think, "Ticket time" and prepare to pull over.But as the car behind you draws nearer, you see that is is just a car with a vivid turn signal.Your behavior regarding the flashing light illustrates

• A) dishabituation.
• B) a perceptual set.
• C) reality testing.
• D) precognition.

---

Definitions:

Subsidy

A financial contribution provided by government to reduce the cost of producing goods or services and support businesses or consumers.

External Costs

Costs of an economic activity that are not borne by the parties directly involved in the transaction but by other individuals or society at large.

Supply Curve

A graph that represents the relationship between the price of a good and the quantity of the good that suppliers are willing to offer for sale.

Socially Optimal

A condition that maximizes societal welfare, often referring to the optimal distribution of resources and goods.