A Teenager Riding in the Backseat of a Car Watches

question 26

Multiple Choice

A teenager riding in the backseat of a car watches someone throw a match onto a hillside. The fire will not be detected by local authorities for several hours, at which point acres and acres of land will have been scorched. The teenager, having not reported what he saw to anyone, apparently fell into the social trap known as ____.

• A) the individual good-collective bad trap
• B) the one-person trap
• C) the missing hero trap
• D) the secret buddy trap

---

Definitions:

Specialization

A production strategy where individuals, regions, or nations focus on the production of a limited scope of goods or services to gain greater efficiency and productivity.

Economies of Scale

Economies of Scale describe the cost advantages that a business can achieve due to expansion, leading to a lower cost per unit of output.

Long-run Average Total Costs

The per-unit production cost when all factors of production are variable and optimized for scale.

Long-run Average Total Cost

The per-unit cost of production when all inputs, including those typically fixed, can be varied, showing economies of scale if downward sloping.