Over the Course of the Eighteenth Century in Colonial America

question 87

Multiple Choice

Over the course of the eighteenth century in colonial America, the

• A) percentage of landowners increased in urban areas.
• B) economic rights of slaves increased.
• C) wealthy wanted to spread the wealth to decrease poverty.
• D) percentage of those owning land was lower than in England.
• E) rich became richer.

Comprehend the reasons behind market failure due to poor information.

Understand the concept and characteristics of public goods, including non-excludability and non-rivalry in consumption.

Recognize the free rider problem and its impact on the provision of public goods.

Comprehend the reasons behind government intervention in providing public goods.

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Definitions:

Actor-Observer Bias

This psychological bias describes a tendency to attribute one’s own actions to external factors, while attributing others’ actions to their character or disposition.

Self-Serving Bias

A common cognitive bias that causes individuals to attribute positive outcomes to their own characteristics and negative outcomes to external factors.

Fundamental Attribution Error

A cognitive bias that leads people to overemphasize personal traits and underestimate situational factors when explaining others' behaviors.

Self-Serving Bias

A cognitive bias that involves attributing successes to internal factors and failures to external factors to maintain self-esteem.