Whether a household or a firm chooses to produce a particular service for itself or contract externally for the service depends upon a non-economic factor that is referred to as:
A) Intuitive bonuses
B) Extraordinary incentives
C) Incentives for amelioration
D) Psychic rewards
E) Altruism

Question

Quizplus · Accepted Answer

The non-economic factor that influences the decision to produce a service in-house or contract externally is referred to as psychic rewards. This refers to the satisfaction or enjoyment gained from performing the activity oneself, rather than outsourcing it to someone else. Therefore, the best answer is D - Psychic rewards.

Whether a Household or a Firm Chooses to Produce a Particular