When There Is a Cost or Benefit That Affects Someone

question 321

Multiple Choice

When there is a cost or benefit that affects someone other than the seller and buyer,then there is

• A) a tax.
• B) a subsidy.
• C) a quantity regulation.
• D) a price regulation.
• E) an externality.

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Definitions:

Problem-focused Coping

A coping strategy that involves directly tackling a stressful situation by finding solutions to resolve the underlying problem.

Mindfulness Meditation

A practice of focused attention and awareness to achieve mental clarity and emotional calmness.

Biofeedback

A technique that trains people to improve their health by using signals from their own bodies to control bodily processes that normally occur involuntarily, such as heart rate.

Feel-good, Do-good Phenomenon

A psychological concept suggesting that individuals who feel happy or content are more likely to perform acts of kindness or altruism.