According to Festinger's Minimal Justification Hypothesis, the Best Way to Affect

question 33

Multiple Choice

According to Festinger's minimal justification hypothesis, the best way to affect long-term attitudinal change is to:

• A) persuade your subjects that the desired attitude is desirable.
• B) persuade your subjects to change their behavior and their attitudes will follow.
• C) use reverse psychology by asking them to believe the opposite.
• D) offer your subjects a generous reward or severe punishment as inducement.

Understand the change in consumer and producer surplus due to taxes.

Comprehend the relationship between tax size, tax revenue, and deadweight loss.

Understand how a government-imposed tax affects consumer surplus, producer surplus, and total surplus.

Calculate the deadweight loss resulting from taxation.

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Definitions:

Herfindahl Index

A measure used to calculate the concentration of market power within an industry by summing the squares of the market shares held by each competitor.

Market Power

The ability of a firm or group of firms to influence or control the terms and conditions of the market to their advantage, often through controlling supply, manipulating prices, or creating barriers to entry.

Technologically Progressive

A characteristic of firms or economies that consistently adopt and implement new technologies, leading to growth and development.

Herfindahl Index

A measure of market concentration, calculated by summing the squares of the market shares of all participants in the market.