In a Field Study by Shultz and His Colleagues (2007)

question 30

Multiple Choice

In a field study by Shultz and his colleagues (2007) , several households in a neighborhood received weekly feedback about their level of energy consumption relative to their neighbors. How are these results being applied?

• A) Neighbors tell each other tips for better energy conservation.
• B) Energy companies send out workers to assess energy consumption.
• C) Some utility companies now put a smiley or sad face on customers' bills.
• D) People are "paying it forward" and teaching others about energy conservation.

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Definitions:

Disposable Income

The total amount of money available for an individual or household to spend or save after taxes have been deducted.

Consumption

The use of goods and services by households, constituting one of the major components of GDP.

APC

Average Propensity to Consume, which is the fraction of income that is consumed rather than saved.

MPS

The marginal propensity to save refers to the portion of each additional dollar of income that is set aside for savings instead of being spent.