When Markets Don't Align Self-Interest with Social Interest

question 40

Multiple Choice

When markets don't align self-interest with social interest:

• A) markets will still manage to reach an efficient outcome.
• B) governments may improve the situation by changing incentives.
• C) societal costs will always exceed individual benefits.
• D) individual benefits will exceed societal benefits.

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Definitions:

Attraction

A force that draws individuals together, leading to friendships, romantic relationships, and cohesive group formation.

Positive Bonds

Connections between individuals that are characterized by positive feelings, such as trust, affection, and mutual respect.

Affection

is a gentle feeling of fondness or liking toward someone or something, reflecting a form of emotional warmth or attachment.

Collective Effervescence

A sociological concept describing the sense of energy and harmony experienced by individuals when participating in a group activity.