Other Things Constant, Which of the Following Would You Expect

question 32

Multiple Choice

Other things constant, which of the following would you expect to increase the output growth rate of a country?

• A) an increase in the rate of taxation on personal income
• B) an increase in the rate of investment as a share of total output
• C) passage of regulations restricting international trade
• D) passage of regulations restricting domestic trade

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Definitions:

Cognitive Consistency

Cognitive consistency is a psychological theory that proposes individuals desire to maintain a consistent set of beliefs, attitudes, and behaviors to reduce psychological discomfort.

Naïve Scientist

A concept in social psychology suggesting that individuals try to understand the social world using attribution processes similar to how a scientist would, making inferences and hypotheses based on observations.

Social Cognition

Cognitive processes and structures that influence and are influenced by social behaviour.

Social Behaviour

Actions and reactions exhibited by individuals within a social context, usually governed by societal norms.