Social Studies


how do externalities encourage/discourage decisions that we make?

1 Answer

  • A very smart question. Looking at social psychology in relation to externalities ( people, norms, taboos, opinions, beliefs, associations), we are encouraged to make good decisions when:

    - encouraged
    - supported
    - gave good advice
    - we know good 's bad
    - when we know others will critizice/ reject/ judge
    - a good home environment ( family)

    bad decisions:

    - bad company
    - lacking common sense
    - discouraged
    - immature
    - not happy or depressed
    - feeling pain

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