What Do the Following Situations Share in Common: a Million

question 93

Multiple Choice

What do the following situations share in common: a million listeners of Orson Welles's broadcast of War of the Worlds become panic-stricken, believing it is a real event; a case of mass psychogenic illness occurs in Tennessee; people in the Middle Ages became "infected" with dancing manias. All are examples of

• A) cognitive dissonance.
• B) obedience to authority.
• C) normative social influence.
• D) informational social influence.

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Definitions:

Consumer Surplus

The difference between the maximum price a consumer is willing to pay for a good or service and the actual price they do pay.

Tax

A mandatory monetary contribution or different sort of tax levied on a taxpayer by a government entity to finance government expenditure and assorted public costs.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is distorted.

Equilibrium

An economic situation in which no individual would be better off doing something different.