An Externality Is Said to Be Internalized

question 76

Multiple Choice

An externality is said to be internalized:

• A)when individuals take external costs and benefits into account in their decision making.
• B)when the Coase theorem is irrelevant or cannot be applied.
• C)when individuals successfully petition the government to ban or restrict activities that generate negative externalities.
• D)when individuals learn to adapt to negative externalities through introspection or internal acceptance of what are viewed as unchangeable facts of life.

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Definitions:

Nature-Nurture Controversy

The nature-nurture controversy is an ongoing debate concerning the relative contributions of genetic inheritance (nature) and environmental factors (nurture) to human development.

Prosocial Behaviour

Positive actions that benefit others, including kindness, sharing, and helping behaviors.

Biological

Pertaining to the science of life and living organisms, including their structure, function, growth, and origin.

Evolutionary Explanation

A theory or account that proposes how certain traits or behaviors have developed over time through the process of natural selection.