If You Follow the Traffic Laws and Rules Because You

question 52

Multiple Choice

If you follow the traffic laws and rules because you believe they are legitimate and good for public welfare, you are demonstrating the _____ stage of moral development.

• A) punishment and obedience
• B) law and order
• C) social contract
• D) instrumental-exchange

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Definitions:

Price Elasticity

An indicator of the variation in the amount of a product desired by consumers as its cost fluctuates.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Complementary Goods

Products or services that are typically consumed together, where the demand for one increases the demand for the other.

Inelastic

Describing demand that changes little with price fluctuations; consumers’ buying habits are not significantly affected by price changes.