Which of the Following Statements Is NOT True of External

question 223

Multiple Choice

Which of the following statements is NOT true of external benefits?

• A) External benefits lead to an underallocation of resources to the production of the good that has the external benefit.
• B) External benefits lead to a price in the market that is too high.
• C) External benefits lead to too few of the goods that have the external benefit being produced.
• D) External benefits are a good thing for the allocation of resources because people are getting something at no cost.

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Definitions:

Stereotyping

Assigning generalized attributes to individuals based on their membership in a particular group, without acknowledging individual differences.

Projection

A psychological defense mechanism where individuals attribute their own unacceptable thoughts, feelings, or motives to someone else.

Expectations

Beliefs or anticipation about the way events, behaviors, or processes should unfold.

Self-Disclosure

The act of revealing personal information about oneself to others, which can build trust and foster closer relationships.