D

E

Free riding and the sucker effect are two psychological phenomena that contribute to social loafing, which is the tendency for individuals to exert less effort when working in a group than when working alone. Understanding how these two concepts influence social loafing can help in developing strategies to mitigate their negative impact on group productivity.

**Free Riding:**
Free riding occurs when individuals assume that others in the group will take on the necessary work, allowing them to contribute less or not at all without affecting the overall outcome. This is based on the belief that their individual effort will not be noticeable or will have little impact on the collective result. In a group setting, if the contribution of each member is not clearly identifiable, some individuals may feel less accountable for the outcome, leading to a decrease in their motivation and effort. This is particularly true in larger groups where individual contributions can be more easily diluted.

The free rider assumes that their lack of effort will go unnoticed or that the group will achieve its goals regardless of their input. This can create a situation where the burden of work is unevenly distributed, with more motivated individuals compensating for the free riders' lack of contribution. Over time, this can lead to resentment and reduced group cohesion.

**The Sucker Effect:**
The sucker effect is a response to free riding. It occurs when individuals who are initially motivated to work hard perceive that others are not pulling their weight and are free riding. Concerned about being taken advantage of or being the "sucker" who works hard while others do not, these individuals may reduce their own effort to avoid being exploited. This is a protective mechanism to prevent oneself from feeling used by the group.

The sucker effect can lead to a downward spiral in group productivity. As the more conscientious members of the group reduce their effort in response to free riders, the overall group performance can decline. This can further demotivate members who may feel that their hard work is not leading to a proportional benefit or recognition.

**Influence on Social Loafing:**
Both free riding and the sucker effect exacerbate social loafing by creating a feedback loop of diminishing effort. When some group members engage in free riding, it can trigger the sucker effect in others, leading to a general decline in group effort and productivity. This can be particularly damaging in collaborative projects where the success of the group depends on the active participation and contribution of all its members.

To counteract social loafing, it is important to establish clear individual responsibilities, create smaller work groups, ensure accountability, provide individual feedback, and foster a group culture that values each member's contribution. By addressing the issues of free riding and the sucker effect, group leaders and members can work towards a more equitable distribution of effort and a more effective team dynamic.

True

E

a. & b. The company's plantwide overhead rate is computed as follows:
Using the plantwide overhead rate, the manufacturing overhead cost that would be allocated to Product L73Z is computed as follows:
Using the plantwide overhead rate, the manufacturing overhead cost that would be allocated to Product A79B is computed as follows:
c. & d. through g. The activity rates would be computed as follows for the ABC system:
The overhead cost charged to Product L73Z under the ABC system is:
The overhead cost charged to Product A79B under the ABC system is:

A plot of the yields on Government of Canada notes and bonds relative to maturity.

False

True