Refer to the Consumption Schedule Shown in the Graph

question 132

Multiple Choice

Refer to the consumption schedule shown in the graph. At income level 3, the amount of consumption is represented by the line segment

• A) FG.
• B) FH.
• C) FD.
• D) GH.

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Definitions:

Cognitive Dissonance

A psychological phenomenon where there is discomfort or mental conflict due to holding contradictory beliefs or attitudes, leading to an internal push for resolution.

Social Judgment Theory

A theory that explains how individuals perceive and evaluate a communication message against their existing attitudes, influencing persuasion and attitude change.

Rejection-Then-Retreat Approach

A persuasive technique where an initial, larger request is made knowing it will be rejected, followed by a smaller, more reasonable request.

Reciprocity/Obligation Approach

A social exchange theory suggesting that individuals feel compelled to return favors or help to those who have aided them.