A problem that exists when naturally occurring incentives ...

[humphriesbr@me.com]

A problem that exists when naturally occurring incentives encourage sufficient numbers of people to act in a way that makes everybody worse off is called a
 
  A) zero-sum problem.
  B) cause-and-effect problem.
  C) collective action problem.
  D) trade-off.

Question 2

When people use all the relevant data and principles of economics to forecast inflation, they are making
 
  A) what is called a data-based forecast.
  B) an always accurate forecast.
  C) a mistake.
  D) what is called a rational expectation.
  E) an exaggerated forecast.

[sailorcrescent]

Answer to Question 1

C

Answer to Question 2

D