Which of the Following Would Be Classified as an External

question 190

Multiple Choice

Which of the following would be classified as an external cost?

• A) As more firms began hiring computer programmers, the salaries of computer programmers increased, and therefore the firm's cost of production increased.
• B) A private firm will not provide national defense, as it is impossible to confine the benefits to only those individuals who have paid for it.
• C) You are not able to study at night because there is so much noise coming from the dorm room next to yours.
• D) When you purchase a prescription drug, you are not made fully aware of all the possible side effects that may result from taking the drug.

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Definitions:

Categorical Approach

A technique for classification that relies on clear and separate categories or groups.

Psychiatric Approach

is a method in medicine focusing on the diagnosis, treatment, and prevention of mental, emotional, and behavioral disorders.

Preparedness

A concept in psychology that suggests organisms are innately predisposed to form certain associations or learn particular types of behaviors more easily.

Phobic Stimuli

Objects or situations that provoke an irrational and excessive fear response.