In the Simple Keynesian Model with No Government or Foreign

question 21

Multiple Choice

In the simple Keynesian model with no government or foreign sectors, assume that full employment occurs at an output level of $10,000. With a marginal propensity to consume of 0.5 and equilibrium output at $9,600, by how much will investment spending have to increase to move the economy to full employment?

• A) $50
• B) $100
• C) $200
• D) $400

Recognize the concept of locus of control and its impact on behavior and attitudes.

Identify the role of genetic factors in determining personality.

Differentiate between the five-factor theory of personality and other personality theories.

Explain the impact of environmental versus biological influences on personality.

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Definitions:

Pluralistic Ignorance

A situation where a majority of group members privately reject a norm, but incorrectly assume that most others accept it, leading to a disconnect between beliefs and behaviors.

Social Responsibility Norm

A societal rule that people should help those who need assistance, without regard to future exchanges.

Dispositional Attributions

The tendency to attribute someone's behavior to their internal qualities or personality traits rather than to external factors.

Situational Attributions

The process of attributing behavior to external factors in the environment or situation, rather than to internal personality traits.