Although George Wants to Help a Stranded Motorist He Passed

question 41

Multiple Choice

Although George wants to help a stranded motorist he passed on the freeway, he passes by because he knows it would take too much time out of his busy schedule.What theory offers the best explanation as to why George did NOT help?

• A) evolutionary
• B) negative-state relief
• C) empathy-altruism
• D) social exchange

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Definitions:

Market Signals

Indicators or signs derived from market behavior that provide information or data regarding the demand or supply conditions, influencing decisions.

Adverse Selection

A situation in which one party in a transaction has more or better information compared to another, leading to an imbalance and potentially poor decision-making, often discussed in insurance markets.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another, often leading to an unfair advantage.

Moral Hazard

The risk that one party to a transaction behaves in a way that is undesirable from the other party's point of view because the latter cannot effectively control the former.