Related to the Economics in Practice on P

question 34

Multiple Choice

Related to the Economics in Practice on p. 125: Suppose Store ABC runs an ad claiming to have "low prices everyday." They even demonstrate that the total expenditure for a basket of groceries is less at their store than at any of their competitors. Which of the following statements is not true?

• A) You would clearly be better off shopping at Store ABC.
• B) Your preferences may not be consistent with the basket used by Store ABC (in their example), thus it is not clear whether or not you would be better off shopping at Store ABC or not.
• C) Even if your preferences are generally consistent with the basket used by Store ABC, it may still be possible for you to substitute other similar goods for those in the basket used by Store ABC (in their example) and thus spend less at another store.
• D) All of the above statements are true.

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Definitions:

Observer Drift

A phenomenon where there is a gradual shift or deviation in the way observers record or interpret information over time.

External Locus of Control

A belief system where individuals think that external forces or events are responsible for their life outcomes.

Reciprocal Determinism

A concept in social cognitive theory that suggests individual behavior, environmental factors, and personal cognitive factors influence each other in a bidirectional manner.

Philosophy Class

A philosophy class explores fundamental questions regarding existence, knowledge, values, reason, mind, and language through analytical and critical discussion.