The Concept of "Pay It Forward"-Doing a Favor Someone and Asking

question 2

Multiple Choice

The concept of "pay it forward"-doing a favor someone and asking that person to do the same in the future-can promote prosocial behavior. Social scientists refer to this concept as ____.

• A) diffuse benefits
• B) upstream reciprocity
• C) future altruism
• D) resource multiplication

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Definitions:

Externality

The uncompensated impact of one person’s actions on the well-being of a bystander

Total Cost

The sum of all expenses incurred in the production of goods or services, including both fixed and variable costs.

Organic

Pertaining to or derived from living organisms; in agriculture, involving food produced without the use of synthetic pesticides or fertilizers.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is not achievable.