Governments Often Subsidize Activities That Generate Positive Externalities in Order

question 179

True/False

Governments often subsidize activities that generate positive externalities in order to get people to engage in more of them.

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Definitions:

Anchoring And Adjustment

Anchoring and adjustment is a cognitive bias in decision-making where an initial piece of information, the "anchor," heavily influences subsequent judgments and adjustments.

Creativity

The use of imagination or original ideas to create something; inventiveness.

Innovation

The creation and development of a new product or service.

Participation Error

The bias or error that can occur in research or decision-making processes when not all relevant parties are included or accurately represented.