Exhibit 13-4 -Refer to Exhibit 13-4. Over the Segment BC of the BC

question 72

Multiple Choice

Exhibit 13-4
-Refer to Exhibit 13-4. Over the segment BC of the curve,

• A)the substitution effect is stronger than the income effect.
• B)the income and substitution effects are evenly matched.
• C)the income effect is stronger than the substitution effect.
• D)income is so high that work is unnecessary.
• E)irrational behavior has set in.

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Definitions:

Primacy Effect

Tendency to attend to the first pieces of information observed about another person in order to form an impression.

Halo Effect

Attributing a variety of positive qualities to those you like.

Horn Effect

Attributing a variety of negative qualities to those you dislike.

Recency Effect

Tendency to attend to the most recent information observed about another person in order to form or modify an impression.