An External Cost

question 20

Multiple Choice

An external cost:

• A) causes markets to allocate resources efficiently.
• B) affects producers but not consumers.
• C) is a cost paid by people other than the producer or consumer trading in the market.
• D) leads to economic efficiency only when private costs are greater than external costs.

Analyze factors contributing to poverty, including education, employment, and family dynamics.

Describe the role of government transfer payments and social insurance programs in addressing poverty and inequality.

Examine the impact of demographic factors and policy decisions on poverty rates and income inequality.

Evaluate the effectiveness of welfare programs and their criteria, including means-tested and in-kind benefits.

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Definitions:

Carl Jung

A Swiss psychiatrist and psychoanalyst who founded analytical psychology and introduced concepts such as archetypes and the collective unconscious.

Alfred Adler

An Austrian psychiatrist known for founding the school of Individual Psychology and his theories on personality, inferiority complex, and social interest.

Sigmund Freud

The founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Richard Lazarus

A psychologist known for his theory on stress and coping, which suggests that stress is a result of an imbalance between demands and resources.