There Are 10 Families in a Neighborhood That Are Affected

question 85

Multiple Choice

There are 10 families in a neighborhood that are affected by noise pollution from a local factory. The noise could be reduced if the company spent $5,000 on technological improvements. The company agrees to make these improvements if the affected families contribute the $5,000. Since there are no legal restrictions governing the factory's noise, the negotiations fail. This outcome is an example of the

• A) free-rider problem.
• B) drop-in-the-bucket problem.
• C) Coase theorem.
• D) problem that arises when property rights are not defined.

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Definitions:

Conditioned Stimulus

An initially neutral signal that, once it is linked with a natural stimulus, eventually elicits a learned response.

Pavlov

Ivan Pavlov, a Russian physiologist known primarily for his work in classical conditioning, particularly experiments with dogs leading to the concept of the conditioned reflex.

Neutral Stimulus (NS)

In classical conditioning, a stimulus that elicits no response before conditioning.

Conditioned Stimulus (CS)

In classical conditioning, a previously neutral stimulus that, after association with an unconditioned stimulus (US), comes to trigger a conditioned response.