The Notion That Individually Rational Behavior May NOT Benefit the Group

question 13

Multiple Choice

The notion that individually rational behavior may NOT benefit the group as a whole is illustrated by the

• A) "tragedy of the commons."
• B) invisible hand of the market.
• C) project toward a perpetual peace.
• D) New International Economic Order.
• E) anarchical society.

---

Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market price.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, resulting in no surplus or shortage.

Supply Increases

A condition in which the quantity of goods and services offered by businesses rises, often leading to lower prices if demand remains constant.

Demand Decreases

Occurs when consumers are less willing or able to purchase a product at any given price, leading to a leftward shift in the demand curve.