Cognitive Consistency Theories Assume All of the Following EXCEPT

question 53

Multiple Choice

Cognitive consistency theories assume all of the following EXCEPT:

• A) that individuals are motivated to decrease or eliminate inconsistencies
• B) that inconsistencies are unpleasant
• C) that rationalization is used to decrease inconsistencies
• D) individuals enjoy the variety of inconsistencies

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Definitions:

Government Intervention

Actions taken by a government to influence or regulate different aspects of its economy.

Coase Theorem

Suggests that if property rights are clearly defined and transaction costs are low, parties will negotiate to solve externalities on their own.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit, often leading to market failures.

Private Sector

The part of the economy that is run by individuals and companies for profit and is not state controlled.