Subtracting the Costs of One Alternative from the Costs of the Other

question 299

Multiple Choice

Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.

• A)sunk
• B)imported
• C)alternative
• D)differential

Recognize the psychological construct of mirror-image perceptions and its impact on relationships and conflict.

Identify and explain the concept of self-fulfilling prophecies in escalating conflicts.

Understand social traps and their potential for collective destruction.

Learn the principles of the reciprocity norm and its role in social interactions and obligations.

---

Definitions:

Free Riders

Individuals who benefit from resources, goods, or services without paying for them, often leading to under-provision or depletion of those resources.

Club Goods

Items that are non-rivalrous but excludable, meaning that one person's use does not reduce availability to others but access can be restricted, typically through a membership fee.

Private Goods

Private goods are products that are excludable and rival in consumption, meaning their use is limited to paying customers and one person's consumption prevents another's.

Externalities

Economic side effects or consequences that affect uninvolved third parties; can be negative (costs) or positive (benefits).