Privatization of Water Services Has Ensured That Water Is Clean

question 38

True/False

Privatization of water services has ensured that water is clean and helpful and affordable in many parts of the developing world.

Understand the basic principles of the market system and its advantages such as efficiency and economic freedom.

Identify the roles of households and businesses within the circular flow model.

Recognize the inherent problems and inefficiencies of centrally planned economies, including the incentive and coordination problems.

Grasp the concept of the "invisible hand" and its implications for promoting societal interests through individual self-interest.

---

Definitions:

Cognitive Dissonance

The mental discomfort experienced by a person who holds two or more contradictory beliefs, ideas, or values at the same time.

Relationship Satisfaction

The degree of contentment and fulfilment one feels in their romantic partnership, often influenced by communication, emotional support, and shared values.

Equity

The principle of fairness and impartiality, often applied in the context of law, finance, and social justice.

Psychological Exchange Theory

A social psychology concept suggesting that interpersonal relationships are formed and maintained based on perceived rewards and costs, mutual benefits, and fairness.