Festinger and Carlsmith (1959) Performed an Experiment in Which Subjects

question 44

Multiple Choice

Festinger and Carlsmith (1959) performed an experiment in which subjects were asked to lie to a "fellow student" for either $1 or $20. For subjects in the $1 condition, dissonance was created by the cognitions "I am an ethical person" and "I have told a lie." Based on the results of this study, which of the following statements best expresses how subjects probably reduced this dissonance?

• A) "I did not really tell a lie-what I said is quite true."
• B) "Though I told that person a lie and I know it, what she doesn't know won't hurt her."
• C) "Lying is a terrible thing."
• D) "I guess I'm not really a very ethical person at all."

---

Definitions:

Fixed-Asset Utilization

Fixed-asset utilization is a measure of how efficiently a company is using its fixed assets, like plant, property, and equipment, to generate sales or revenue.

Internal Growth Rate

The maximum growth rate a company can achieve without needing to secure additional financing.

Working Capital Decision

Decisions that relate to managing the short-term assets and liabilities of a company, crucial for maintaining its operations and liquidity.

Capital Budgeting

The process used by companies to evaluate and select long-term investments that are likely to help achieve their financial goals.