After a Year-Long Drought,the City of Pine Bluffs Has Banned

question 109

Multiple Choice

After a year-long drought,the city of Pine Bluffs has banned all lawn sprinkling.Many residents believe,however,that continued watering of their own lawn will have little effect on total water reserves.Consequently,there is a disastrous drain on city water reserves caused by widespread illegal sprinkling.This incident best illustrates the dynamics of

• A) a reciprocity norm.
• B) social traps.
• C) the bystander effect.
• D) diffusion of responsibility

---

Definitions:

Administrative Processing

Procedures and activities related to the management and execution of office tasks and functions.

NPV Method

A capital budgeting technique that calculates the difference between the present value of cash inflows and outflows over a period of time to assess the profitability of an investment.

Reinvested

Refers to the practice of using profits or dividends earned from an investment to purchase additional shares or units, thus compounding the investment's growth.

Cost of Capital

The minimum rate of return a company must earn on its investments to maintain its market value and attract funds.