The Situation in Which Individuals Are Tempted Not to Contribute

question 55

Multiple Choice

The situation in which individuals are tempted not to contribute to a cause because they will get the benefits even if they do not participate is called the

• A)size factor.
• B)free-rider problem.
• C)special-interest paradox.
• D)disincentive factor.
• E)zero-sum game.

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Definitions:

Tax Code

The laws and regulations governing the taxation process in a country.

Saving

The portion of income not spent on consumption but rather set aside for future use or investment.

Time Inconsistency

The phenomenon where a decision-maker's preferences change over time, leading to choices that may not align with their long-term goals.

Monetary Policy

The process by which a central authority, usually a central bank, controls the money supply and interest rates to achieve economic objectives.