When a Group of People Stand to Gain from an Action

question 2

Multiple Choice

When a group of people stand to gain from an action that is not rational for any of the members to undertake individually,it is referred to as a:

• A) free-rider problem.
• B) collective-action problem.
• C) moral hazard problem.
• D) societal-wellbeing problem.

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Definitions:

Psychological Hardiness

A personality trait characterized by resilience and the capability to endure stressful situations effectively.

Suzanne Kobasa

A psychologist known for her research on stress, specifically the concept of stress resilience and the "hardiness" personality trait.

Commitment

The state or quality of being dedicated to a cause, activity, or goal, often involving a promise or firm decision to do something.

Challenge

Any task or situation that tests someone's abilities in a way that is stimulating, demanding, or requires an effort to overcome.