Which of the Following Is a Good Reason to Use

question 7

Multiple Choice

Which of the following is a good reason to use a contract as opposed to having a casual understanding?

• A) Casual understandings require lengthy negotiations and time to perform.
• B) All contracts typically involve arrangements that are unlikely to be repeated.
• C) Casual understandings are casually conducted and completed instantly.
• D) All contracts are subject to the same set of compulsory legal rules.

Identify the roles of government budget deficits and surpluses in the open-economy macroeconomic model.

Analyze the implications of changes in real interest rates on net capital outflow and the demand for loanable funds.

Understand the basic concepts of self-attribution and explanatory styles.

Recognize the self-serving bias and its effects on personal and situational attributions.

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Definitions:

Central Route Persuasion

A technique for convincing others that requires thoroughly understanding the message's content, resulting in enduring changes in attitudes.

Foot-In-The-Door Phenomenon

The tendency for people who have first agreed to a small request to comply later with a larger request.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort or mental conflict due to holding contradictory beliefs, values, or attitudes, especially when prompted to act against one of those beliefs.

Situational Attribution

The process of attributing an individual's behavior to external factors in the environment rather than to internal personality traits.