To Internalize a Positive Externality

question 105

Multiple Choice

To internalize a positive externality:

• A)​the consumers of a good could receive a subsidy equal to the external benefit resulting from the production or consumption of the good.
• B)​a producer's costs could be increased by an amount equal to the external benefit resulting from the production of the good.
• C)​consumers of the good could pay a tax equal to the external benefit resulting from the production or consumption of the good.
• D)​None of the above are correct.

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Definitions:

Empathy

The ability to understand and share the feelings of another, crucial in therapeutic and personal relationships for effective communication.

Genuineness

Being authentic and true in one’s feelings and expressions in a therapeutic or interpersonal relationship.

Positive Regard

This term describes a basic acceptance and support of a person regardless of what the individual says or does, especially in the context of client-centered therapy.

Facilitative Conditions

Environmental or interpersonal conditions that make a task easier to perform or facilitate the learning process.