The Most Important Reason Why Some Social Rules or Customs

question 18

Multiple Choice

The most important reason why some social rules or customs do not require coercive enforcement is:

• A) The costs of deviating from the rules are greater than the incentives of following them
• B) Most people agree that they are good rules.
• C) They exist in the private realm and cannot be coercively enforced.
• D) They are effectively enforced by the family.

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Definitions:

Consumer Surplus

The difference in what consumers think to pay for a good or service and the actual amount they pay.

Equilibrium

A condition where the supply and demand in the market are equal, leading to stable prices.

Equilibrium Price

The price point at which the quantity of goods supplied equals the quantity of goods demanded, resulting in a balance between supply and demand.

Producer Surplus

The gap between the amount producers are ready to accept for a good and the actual amount they end up receiving.