Economists Tend to Distrust Voluntary Approaches as a Way to Deal

question 152

Multiple Choice

Economists tend to distrust voluntary approaches as a way to deal with externalities. What is their most common concern?

• A) Voluntary approaches do not make people develop an awareness of the problem that would lead them to make good lifestyle changes.
• B) Voluntary approaches often are perceived as unfair, imposing a heavy burden on the poor.
• C) Voluntary approaches usually require people to ignore their self-interest, and economists do not think people do that well.
• D) Voluntary approaches are often too effective and lead to excessive reduction in the externality.

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Definitions:

Therapeutic Intervention

A strategic action or treatment, often within the context of psychotherapy, designed to help individuals overcome issues or attain better functioning.

Intervention Effect

The outcome or change resulting from a specific action or intervention, often used in the context of clinical trials or social science research to assess the impact of treatments or interventions.

Positive Reinforcers

Stimuli that, when presented after a behavior, increase the likelihood of that behavior being repeated.

Negative Reinforcers

Stimuli that when removed after a response, increase the likelihood of that response being repeated in the future.