In a College Course It Is Likely That There Will

question 165

Multiple Choice

In a college course it is likely that there will be ___________ shirking in a group project than in an individual project because the costs of shirking are relatively _________ in the group project.

• A)less; higher
• B)more; higher
• C)less; lower
• D)more; lower

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Definitions:

Economic Efficiency

A condition in which resources are allocated in the most effective way possible, maximizing outputs from given inputs without waste.

Allocative Efficiency

A state of resource allocation where goods and services are distributed according to consumer preferences, reflecting an optimal distribution of resources.

Producer Surplus

The gap between the minimum amount sellers are prepared to accept for a product or service and the actual price it sells for.

Negative Externalities

Costs that result from an activity or transaction and affect third parties who did not choose to incur that cost.