Which of the Following Is True

question 12

Multiple Choice

Which of the following is true?

• A) A person might choose to not move because their family is better off by not moving, even though the person would individually be better off by moving.
• B) A family will move even though as a unit they are better off staying as long as at least one member of the family is made better off by moving.
• C) When a family migrates, there may be both tied movers and tied stayers in the family.
• D) A repeat mover must have made a mistake in the initial move.
• E) Cultural assimilation is not included in migration costs.

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Definitions:

Resource Allocation

The process of distributing available resources among different uses identified in an economy.

Taxing Polluters

A policy approach that imposes taxes on companies or individuals who produce pollution as a means to internalize environmental externalities and encourage pollution reduction.

Positive Externalities

Benefits that affect a third party not directly involved in a transaction or activity, resulting in a positive effect on society.

Principal-Agent Problem

A dilemma in economics where one party (the agent), acting on behalf of another party (the principal), may have different goals or incentives, potentially leading to inefficiencies.