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.

---

Definitions:

Joint Ventures

Establish operations in a foreign country through joint ownership with local partners.

Strategic Alliances

Partnerships between two or more companies to pursue a set of agreed-upon objectives while remaining independent organizations.

Independent Achievement

Accomplishments or successes achieved by a person relying on their own efforts and skills without the help of others.

Multinational Corporations

Large companies that operate in multiple countries, beyond their original or home base, often involved in various businesses.