In the Paradox of Thrift

question 15

Multiple Choice

In the paradox of thrift:

• A) firms that are pessimistic about the future lay off the most saving-conscientious workers.
• B) when families and business are feeling pessimistic about the future, they spend more.
• C) increased saving by individuals increases their chances of becoming unemployed.
• D) risky behavior during economic tough times has large negative consequences for society.

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Definitions:

Developmental Task

A learning task that is typical at a certain stage in life, which an individual must successfully complete for optimal development.

Havighurst

Refers to Robert Havighurst's developmental task theory, which suggests that individuals must navigate through specific key tasks during different stages of life.

Psychosocial Theory

A framework for understanding human behavior that encompasses both psychological and social factors.

Stagnation

A period of lack of growth, development, or advancement, often reflected in middle adulthood when individuals may struggle with contributing meaningfully to society.