An Externality Is

question 43

Multiple Choice

An externality is

• A)a cost of a transaction that is borne by a third party
• B)a benefit of a transaction that is enjoyed by a third party
• C)a cost or benefit that arises when market price changes
• D)any cost or benefit of a transaction that is not accounted for in the market price
• E)the external revenue generated by a firm

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Definitions:

Behavioral Contrast

The change in the strength of one response occurring in the context of the changed reinforcement conditions for an alternative response.

Lashley-Wade Model

A theoretical framework for understanding how behavior is learned and modified, although not widely recognized, it suggests a focus on experimental analysis of behavior.

Discrimination Training

The process of reinforcing a response to a specific stimulus while not reinforcing responses to similar stimuli, thereby teaching the subject to differentiate between the stimuli.