Which of the Following Situations Best Illustrates the Placebo Effect

question 189

Multiple Choice

Which of the following situations best illustrates the placebo effect?

• A) You sleep because you are tired.
• B) You throw up after eating bad meat.
• C) You have surgery to repair a defective heart valve.
• D) You drink a nonalcoholic drink and become "intoxicated" because you think it contains alcohol.

---

Definitions:

Interest Rate

The percentage of a sum of money charged for its use, typically by a bank or financial institution on loans or savings.

Market Rate of Interest

The prevailing interest rate available in the marketplace on loans and deposits, determined by the demand and supply of credit.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in evaluating investment opportunities.

Supply and Demand

An economic model explaining how the price and quantity of goods and services are determined in a market.