In the Case of a Private Good, Which of the Following

question 190

Multiple Choice

In the case of a private good, which of the following forms of economic organization will result in the strongest incentive for consumers and producers to economize?

• A) The good is produced privately and taxes are used to provide it to consumers free of charge.
• B) The good is produced privately and consumers purchase it with their own money.
• C) The good is produced by government enterprises and the cost of its production is covered by taxes.
• D) The good is produced by government enterprises and consumers purchase it with their own money.

---

Definitions:

Deindividuation

A psychological state where an individual loses self-awareness and sense of individuality, often leading to disinhibited and impulsive behavior, typically in group settings.

Foot-In-The-Door

A persuasion technique where a small request is made first to gain compliance, followed by a larger request, increasing the likelihood of agreement.

Door-In-The-Face

A persuasion technique whereby a large, unreasonable request is made first and, if refused, a smaller, more reasonable request is made.

Lowballing

A sales and negotiation tactic where an initially lower price is offered to lure the customer or counterpart, only to increase it later on.