If Indifference Curves and Budget Lines Are Used to Analyze

question 142

Multiple Choice

If indifference curves and budget lines are used to analyze consumer choice, an inferior good will

• A)escape detection when income rises.
• B)be easily identified because the quantity purchased will fall as income rises.
• C)be easily identified because the quantity purchased will rise as income rises.
• D)be easily identified because it will change the slope of the budget line.
• E)escape detection because this model does not show that relationship.

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Definitions:

Cognitive Dissonance Theory

The theory that we act to reduce the discomfort (dissonance) we feel when two of our thoughts (cognitions) are inconsistent. For example, when we become aware that our attitudes and our actions clash, we can reduce the resulting dissonance by changing our attitudes.

Leon Festinger

A psychologist best known for his theory of cognitive dissonance, which describes the discomfort experienced when holding conflicting ideas or beliefs.

Fritz Heider

A psychologist known for his work in the development of attribution theory, which tries to explain how people evaluate the causes of others' behavior.

Phillip Zimbardo

An American psychologist best known for his controversial Stanford Prison Experiment, exploring the effects of perceived power and environment on human behavior.