The Tendency for Groups to Make Less Extreme Decisions Than

question 92

True/False

The tendency for groups to make less extreme decisions than individuals is known as group polarization.

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Definitions:

Socially Optimal

A condition that maximizes societal welfare, often referring to the optimal distribution of resources and goods.

Government Intervention

Government intervention involves actions taken by a government to affect the economy, which can include regulations, subsidies, and taxes, aiming to correct market failures or achieve social goals.

Optimal Supply

Refers to the ideal level of stock or inventory that a company should maintain to meet demand without incurring excess costs or shortages.

Product Price

The monetary cost of a product, determined by factors such as production costs, competition, demand, and market conditions.