Which of the Following Would Be Predicted by Social Impact

question 92

Multiple Choice

Which of the following would be predicted by social impact theory?

• A) A person is more likely to obey a nearby authority than one who is far away.
• B) Each person in a group of three contributes less money to a tip for their waitperson than each person in a group of ten.
• C) A teacher can exert more control over a large class than a small class.
• D) Patients are more likely to follow advice given by nurses than advice given by doctors.

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Definitions:

Forward Contract

A bespoke arrangement between two parties for acquiring or disposing of an asset at a designated price on an upcoming date.

Hedge

An investment made to reduce the risk of adverse price movements in an asset.

Speculative Forward Contract

A financial derivative used to speculate on the future price of an asset, involving an agreement to buy or sell the asset at a future date for a price determined today.

Fair Value Hedge

A risk management technique that uses financial instruments to mitigate the risk associated with changes in the fair value of an asset or liability.