After a Year-Long Drought,the City of Pine Bluffs Has Banned

question 109

Multiple Choice

After a year-long drought,the city of Pine Bluffs has banned all lawn sprinkling.Many residents believe,however,that continued watering of their own lawn will have little effect on total water reserves.Consequently,there is a disastrous drain on city water reserves caused by widespread illegal sprinkling.This incident best illustrates the dynamics of

• A) a reciprocity norm.
• B) social traps.
• C) the bystander effect.
• D) diffusion of responsibility

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Definitions:

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.

Natural Rate of Unemployment

The level of unemployment consistent with a stable rate of inflation, also seen as the equilibrium between the labor force and the number of available jobs.

Actual Inflation

The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling, as measured over a specific period.

Expected Rate of Inflation

The expected pace at which the overall price level of goods and services will increase over time.