When External Benefits Exist, Which of the Following Can Produce

question 52

Multiple Choice

When external benefits exist, which of the following can produce the efficient amount of output? I. vouchers
II) private subsidies
III) taxes
IV) marketable permits

• A) I and II only
• B) I and III only
• C) II and IV only
• D) III and IV only

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Definitions:

Foot-In-The-Door Phenomenon

The tendency for people who have first agreed to a small request to comply later with a larger request.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort or mental conflict due to holding contradictory beliefs, values, or attitudes, especially when prompted to act against one of those beliefs.

Situational Attribution

The process of attributing an individual's behavior to external factors in the environment rather than to internal personality traits.

Attitude

An acquired inclination to assess various entities, including people, topics, objects, or occurrences, in a specific manner.