When Government Bodies Use Their Power to Impose Limits on How

question 44

Multiple Choice

When government bodies use their power to impose limits on how much of a resource is consumed:

• A)they can enhance efficiency in markets for common resources.
• B)they will always cause deadweight loss.
• C)they must first decide on the "right" amount for the public to consume.
• D)they often have failed to first attempt the use of social norms to correct the problem.

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Definitions:

Maslow's Hierarchy

A psychological theory proposing a five-tier model of human needs, from basic physiological needs to self-actualization, influencing human motivation.

Individual Variation

Differences in characteristics, behavior, or responses among individuals of a population or species.

Novel Stimulation

New or unfamiliar stimuli that attract attention or elicit a response due to their difference from previous experiences.

Cognitive Dissonance

A psychological state of discomfort experienced when holding two or more conflicting cognitions (beliefs, attitudes, or behaviors).