The Tendency to Think That a Product Is Good Because

question 79

Multiple Choice

The tendency to think that a product is good because "everybody else" thinks that it is good is related to the principle of:

• A)authority.
• B)consistency.
• C)consensus.
• D)reciprocity.
• E)scarcity.

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Definitions:

User Cost

The cost of using a good or service, which includes the opportunity cost of choosing one alternative over others.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Delayed Extraction

The postponement of resource or raw material extraction to achieve more efficient processing or higher market values at a later time.

Weak Property Rights

A situation where property rights are not fully enforced or clearly defined, leading to uncertainty and potential inefficiency in economic transactions.