When a Stray Dog Wanders into a Classroom, All of the Students

question 69

Multiple Choice

When a stray dog wanders into a classroom, all of the students stop their seatwork and watch the teacher try to coax the dog from the room. The students' attentiveness demonstrates the effect of _______ on attention.

• A) novelty
• B) proximity
• C) size
• D) personal significance

---

Definitions:

Production Subsidies

Financial support given by the government to producers or manufacturers to help reduce the cost of producing goods or services.

External Costs

These are costs of a transaction that affect someone who did not choose to incur that cost, often not reflected in the market prices.

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, often leading to an imbalance and inefficient market outcomes.

Home Insurance

A type of insurance policy that provides coverage for damages or losses to an individual’s residence and possessions.