No Matter How Artificial an Experimental Situation May at First

question 133

Multiple Choice

No matter how artificial an experimental situation may at first appear,if participants think,feel,or react the way that people in a real-life situation would react,the experiment has

• A) low demand characteristics.
• B) high mundane realism.
• C) low mundane realism.
• D) little experimenter bias.
• E) high psychological realism.

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Definitions:

Collusive Behavior

Actions among firms to limit competition, set prices, or otherwise interfere with free market operations, often illegally or in secret.

Cartel

An association of independent businesses organized to regulate production, pricing, and marketing of goods by the members to monopolize a market.

Economic Efficiency

A state where resources are allocated in a manner that maximizes the production of goods and services without wasting any resources.

Economies of Scale

Financial advantages gained by firms due to their operational size, where a greater volume of production usually correlates with a lower cost for each output unit.