As a Child, Clark Almost Drowned When a Wave Hit

question 14

Multiple Choice

As a child, Clark almost drowned when a wave hit him as he was playing in the ocean. As an adult, Clark does not consciously remember the incident, but avoids going to the beach and even feels uncomfortable watching movies with ocean scenes. It is likely that Freud would consider Clark's memory failure as an example of _____.

• A) rationalization
• B) repression
• C) reaction formation
• D) regression

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Definitions:

Productive Efficiency

A state in which the economy or an economic system is able to produce maximum output from a given set of inputs without wasting resources.

Marginal Cost

The price involved in producing one more unit of a product or service.

Marginal Revenue

The additional revenue that is gained by selling one more unit of a product.

Deadweight Losses

Economic inefficiencies that occur when market equilibrium is disrupted, leading to a loss of economic welfare.