Imagine That Someone Asked You to Do Something You Found

question 57

Multiple Choice

Imagine that someone asked you to do something you found very distasteful, such as eating a handful of sugar-coated beetles. For the sake of argument, let's say that you complied and ate the beetles. According to dissonance theory, under which of the following conditions would you be most likely to find the experience of eating beetles enjoyable?

• A) When your best friend offered you a large reward for eating them
• B) When a person you disliked offered you a large reward for eating them
• C) When your best friend offered you a small reward for eating them
• D) When a person you disliked offered you a small reward for eating them

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Definitions:

Optimal Tax

A tax system designed to achieve the best balance between efficiency and equity.

Marginal Social Benefit

The supplementary gain for society derived from the consumption of one extra unit of a good or service.

Marginal Social Cost

The cost to society of producing an additional unit of a good or service, including both private costs and any externalities.

Marginal Social Benefit

The additional gain to society as a whole from an additional unit of a good or service.