When an individual incurs costs in the form of negative personal satisfaction,the costs are

Question

Quizplus · Accepted Answer

Psychic costs refer to the negative personal satisfaction or psychological costs that an individual incurs when making economic decisions. These costs are not monetary in nature but are still relevant in decision making. Therefore, option (C) is the correct answer. Option (A) - Opportunity costs are the benefits foregone in choosing an alternative option, (B) - Implicit costs are the opportunity costs of using resources owned by the individual himself that could have been used in other ways, (D) - Psychic income is the positive psychological satisfaction that an individual derives from a particular economic decision, and (E) - Externalities are the costs or benefits that are not captured by the market price and are borne by third parties.

When an Individual Incurs Costs in the Form of Negative