According to Mancur Olson, Small Groups Are Able to Overcome

question 117

Multiple Choice

According to Mancur Olson, small groups are able to overcome the collective action problem more easily than large groups because small groups

• A)are generally not formed for self-interest reasons.
• B)are more personal and thus more vulnerable to interpersonal persuasion.
• C)are generally formed by labor interests, which are better at enforcing collective action.
• D)have fewer resource needs.
• E)tend to focus on providing public goods instead of private goods.

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Definitions:

Not-For-Profit

A tax status granted to companies performing functions deemed by Congress to be socially desirable that exempts them from income tax and, in some cases, allows them to receive tax-deductible donations.

Entrepreneurial Spirit

An attitude and approach characterized by innovation, risk-taking, and the ability to see and seize opportunities for business or personal gain.

Entrepreneur

An individual who undertakes the creation, organization, and ownership of an innovative business with potential for growth and financial reward.

Franchising

A business model that allows individuals to operate their own outlets of a larger chain, sharing in the brand, products, and operational support.