The Price of Diamonds Is High,in Part Because the Majority

question 16

Multiple Choice

The price of diamonds is high,in part because the majority of the world's diamonds are controlled by a single firm.This is an example of

• A)a market failure caused by an externality.
• B)a market failure caused by market power.
• C)a market failure caused by equality.
• D)There is no market failure in this case.

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Stuttering

A speech disorder characterized by repeated or prolonged sounds, syllables, or words, disrupting the normal flow of speech.

Transference

In psychoanalysis, the patient’s transfer to the analyst of emotions linked with other relationships (such as love or hatred for a parent).

Psychological Conflicts

Inner struggles resulting from the clash of opposing needs, desires, or emotions.