When a Negative Externality Exists in a Market, the Cost

question 170

Multiple Choice

When a negative externality exists in a market, the cost to producers

• A)is greater than the cost to society.
• B)will be the same as the cost to society.
• C)will be less than the cost to society.
• D)will differ from the cost to society, regardless of whether an externality is present.

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Definitions:

Fixed Interval

A schedule of reinforcement where the first response is rewarded only after a specified amount of time has passed, used in behavioral psychology.

Fixed Ratio

A schedule of reinforcement where a response is reinforced only after a specified number of responses, often used in learning and conditioning processes.

Creative Intelligence

The ability to produce new products, ideas, or innovative solutions to problems.

Divergent Thinking

A mode of thinking that encourages creative exploration of many possible solutions to a problem.