Altering Incentives So That People Take Account of the External

question 282

Multiple Choice

Altering incentives so that people take account of the external effects of their actions

• A)is called internalizing the externality.
• B)can be done by imposing a corrective tax.
• C)is the role of government in markets with externalities.
• D)All of the above are correct.

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Definitions:

Positive Psychology

A branch of psychology focused on the study of positive emotions, strengths-based character, and healthy institutions to improve quality of life.

Evolutionary Psychology

A theoretical approach in the social and natural sciences that examines psychological structure from a modern evolutionary perspective.

Adaptive Value

The extent to which a trait or behavior increases the chances of survival and reproduction of an organism in its environment.

Behavioral Genetics

The field of study that examines the role of genetics in human (and animal) behavior, often looking at genetic and environmental influences.