The Ponzi Scheme Succeeded Because It Appealed to People's Desire

question 50

True/False

The Ponzi scheme succeeded because it appealed to people's desire to make a
secure, conservative investment.

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Definitions:

Withhold Effort

Refers to deliberately holding back or not fully applying one's effort or capabilities in a task or situation.

Free Rider Effect

A situation where some individuals benefit from resources or services without contributing to the cost.

Proportional Share

An allocation method where resources, rewards, or responsibilities are distributed among parties based on a predefined ratio or proportion.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.