The Third-Party Problem

question 157

Multiple Choice

The third-party problem

• A) occurs when a market activity leads to a negative externality.
• B) occurs when a market activity leads to a positive externality.
• C) occurs when a market activity leads to a negative or a positive externality.
• D) is the same as the free-rider problem.
• E) is associated with the production of private goods but not public goods.

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Definitions:

Internal Attributions

The explanation of an individual's behavior as a result of personal, internal qualities such as ability, personality, or effort.

Internal Causes

Reasons or factors within an individual (like personality traits or beliefs) that explain behaviors or events.

Free Choice

The ability or power to make decisions without being restricted or coerced.

Robbers' Cave

An experiment focusing on group conflict and cooperation, illustrating how group identity can impact intergroup relations.