An Alternative Concept of Fairness in Cost Allocation, Absent the Cause-And-Effect

question 53

Multiple Choice

An alternative concept of fairness in cost allocation, absent the cause-and-effect basis, includes:

• A)Ability-to-bear.
• B)Efficiency.
• C)Different costs for different purposes.
• D)Consistency.

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Definitions:

Peer Lending

A financing method where individuals lend and borrow money to each other directly without the intervention of traditional financial institutions.

Capital Flight

The large-scale exodus of financial assets and capital from a country due to economic or political instability.

Imperfect Information

A situation where all parties in a transaction do not have the same information, leading to an inefficient market outcome.

Tragedy Of The Commons

A situation where individual users, acting independently according to their own self-interest, deplete or spoil shared resource through their collective action.