The Debate About Different Consumption Theories Can Be Viewed as a Debate

question 9

Multiple Choice

The debate about different consumption theories can be viewed as a debate over whether

• A)the consumption of durable or non-durable goods should be considered
• B)random events that can change consumption behavior really do occur
• C)liquidity constraints do ever exist
• D)the marginal propensity to consume is large or small
• E)the average propensity to consume is less or greater than 1

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Definitions:

Extrinsic Motivations

refer to motivation that comes from external factors or rewards outside of the individual, such as money, grades, or approval.

Intrinsic Motivations

The drive to engage in an activity for its own sake, deriving pleasure and satisfaction from the activity itself rather than external rewards.

Self-actualization

represents the realization of an individual's potential, self-fulfillment, seeking personal growth, and peak experiences.

Homeostasis

The ability or tendency of an organism or cell to maintain internal equilibrium by adjusting its physiological processes.