An Experiment Was Conducted in Which a Person Was Talking

question 354

Multiple Choice

An experiment was conducted in which a person was talking to a young adult stranger, and two workers carried a door between this person and the young man. Another young man was switched with the original stranger. Only half of the participants tested this way noticed the switch. What were the conclusions regarding this experiment?

• A)More college students did not notice the switch because they were in a hurry and thinking about getting to their next class.
• B)More older persons did not notice the switch because their brains are beginning to be damaged by the onset of senility.
• C)More older persons did not notice because they encoded both young men in very general terms as a "college student."
• D)More older persons did not notice the switch because of poor visual acuity.

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Definitions:

Agency Problems

Conflicts of interest between the principals (owners or shareholders) and agents (managers) of a company, often arising from differing motives or information asymmetry.

Control Problems

Issues that arise in contexts where one party (the principal) delegates tasks to another party (the agent), who may have different interests or information.

Proxy Fights

Efforts by a group of shareholders to alter company management or policies by persuading other shareholders to vote in a way that is contrary to the current management's wishes.

Agency Problem

A conflict of interest arising between parties in a transaction, typically between the principals (owners) and the agents (managers) of a company, where the agent may not act in the best interest of the principal.