A Principles of Microeconomics Professor Wants to Know How Much

question 179

Multiple Choice

A Principles of Microeconomics professor wants to know how much prior knowledge her students have before beginning the class so she gives them a pre-test. This action is an example of

• A)signaling.
• B)screening.
• C)adverse selection.
• D)moral hazard.

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Definitions:

Dissonance Reduction

A psychological process by which individuals reduce the discomfort (dissonance) caused by conflicting beliefs, values, or attitudes, often by changing or rationalizing them.

Counterattitudinal Behavior

Engaging in behavior that is inconsistent with one's beliefs, attitudes, or values.

Induced Hypocrisy

A psychological state induced when individuals are made aware of a discrepancy between their attitudes and behaviors, leading to discomfort and a potential change in behavior.

Cognitive Dissonance

The mental discomfort experienced when holding two or more contradictory beliefs, values, or attitudes, prompting individuals to seek consistency.