For Many People, the Main Motivation for Certain Behaviors (Such

question 21

Multiple Choice

For many people, the main motivation for certain behaviors (such as painting graffiti on walls) is "showing off." If someone now provides a small payment for the same behavior, the person's desire to do the behavior may actually decrease. The decreased motivation is an example of the

• A) externality hypothesis.
• B) overjustification effect.
• C) principle of homeostasis.
• D) hierarchy of needs.

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Definitions:

WARP

WARP, or the Weak Axiom of Revealed Preference, is a consistency criterion for consumer choice behavior, suggesting that if a consumer prefers bundle A over bundle B when both are affordable, they should not choose B when A is still affordable.

Bundle

A collection of items or services grouped together as a single package.

Laspeyres Price Index

A price index calculated by taking the ratio of the total cost of purchasing a specified set of goods and services at current prices to the total cost of purchasing the same set of goods and services at base period prices, using base period quantities as weights.

Per Capita Income

The average income earned per person in a given area or country, calculated by dividing the total income by the population size.