When Al Makes the Statement, "The Cost of Living Has

question 470

Multiple Choice

When Al makes the statement, "The cost of living has increased 10 percent over the past 10 years," he is

• A) making a normative statement.
• B) making a positive statement.
• C) testing an economic model.
• D) facing the standard of living tradeoff.

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Definitions:

Catastrophizing

An irrational thought process leading one to believe that something is far worse than it actually is, often resulting in increased anxiety or worry.

Discounting Positives

A cognitive bias where individuals disregard or minimize positive information, experiences, or attributes about themselves.

Repeated Role-play

The continuous practice of acting out roles in a controlled setting to improve skills, behaviors, or emotional responses.

Perceptual Responses

Reactions or interpretations based on the perception of stimuli, including how individuals see, hear, feel, taste, or smell various inputs.