The Economically Efficient Level of an Externality Is Zero

question 143

True/False

The economically efficient level of an externality is zero.

---

Definitions:

Classical Conditioning

The act of learning that happens when two stimuli are paired together repeatedly, and a reaction initially caused by the second stimulus starts to be triggered by the first stimulus exclusively.

Discriminative Stimulus

A cue or event that indicates that a particular response will lead to a certain consequence in operant conditioning.

Generalized Stimulus

A stimulus that elicits a response not only to the original stimulus but also to similar stimuli.

Reinforcement

In behavioural psychology, a process by which a stimulus increases the probability of a preceding behaviour being repeated.