Sam Is a Recent College Graduate with a Lot of Firsts

question 164

True/False

Sam is a recent college graduate with a lot of firsts: First professional job, first new car, first apartment, and first time making all of his own financial decisions. As he works on his monthly budget, he can't help but wonder why he is barely making ends meet. Each month, it takes his entire paycheck to pay his rent, his car payment, and buy food. Last month, he told his parents, "I'm sure I had more money when I was a starving student!" You recently learned about key economic indicators in your business class. You inform Sam that his problems are caused by severe deflation and lack of demand for products and services.

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Definitions:

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more conflicting beliefs, ideas, or values.

External Locus Of Control

This occurs in people who feel they have no control over the events in their lives.

Content Conflict

Disagreement or dispute that arises over specific issues, facts, or matters at hand in a discussion or negotiation.

Instrumental Values

Values that act as a means to an end, guiding how we achieve our goals and interact with others; they include traits like honesty, self-discipline, and independence.