A Collective-Action Problem Is a Situation in Which

question 7

Multiple Choice

A collective-action problem is a situation in which:

• A)a group of people stand to gain from an action that is not rational for any of the members to undertake individually.
• B)people are often reluctant to voluntarily pay for goods and services that provide benefits for everyone,even for those who don't pay.
• C)people are reluctant to voluntarily pay for goods and services because they believe their individual contribution will not make a difference.
• D)a small group of individuals gains power that sways the decisions of society to their personal gain at the expense of the larger society.

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Definitions:

Labour Costs

The total expenditure incurred by employers to compensate their employees, including wages, benefits, and taxes.

Organization

A structured group of people who come together to achieve common goals, often through a division of tasks, responsibilities, and hierarchical structure.

Reduce Expenses

Implementing strategies and actions aimed at cutting down costs and spending less money in personal or business operations.

Headcount

The total number of individuals working for a company, either as full-time employees or in positions equivalent to full-time employment.