If Individuals Are Asked to Rate the Effectiveness of Condoms

question 85

Multiple Choice

If individuals are asked to rate the effectiveness of condoms in preventing the transmission of HIV (the virus that causes AIDS) , they would be most likely to rate a condom as effective if they were told:

• A) that the condom has a 95 percent success rate in protecting against the HIV.
• B) that only 5 condom users out of every 100 are not protected against the HIV.
• C) that the condom has a 5 percent failure rate in protecting against the HIV.
• D) It does not matter, because all of the other options describe the same statistical effectiveness.

Recognize the role of time and opportunity cost in consumer behavior.

Explain the diamond-water paradox and the importance of marginal utility in determining price.

Analyze the impact of external factors (e.g., pricing strategies, technological advancements) on consumer preferences and demand.

Understand the concept of job enrichment and its implications for job design.

---

Definitions:

Business Quarters

Divisions of the fiscal year into four equal parts, typically three months each, used by businesses to report earnings and assess performance.

Demand-Pull Inflation

An economic condition where prices rise because the demand for goods exceeds supply.

Cost-Push Inflation

Inflation caused by an increase in the cost of production, such as higher raw material costs, which is passed on to consumers in the form of higher prices.

Creditors

Creditors are individuals, businesses, or institutions that lend money or extend credit to others, expecting repayment in the future.