Table 9.2 -Refer to Table 9.2, Which Shows the Values of Different

question 170

Multiple Choice

Table 9.2

-Refer to Table 9.2, which shows the values of different components of aggregate expenditure of an economy. The marginal propensity to consume (MPC) equals _____

• A) 0.20 or 1/5.
• B) 0.40 or 2/5.
• C) 0.80 or 4/5.
• D) 0.90 or 9/10.
• E) 0.60 or 3/5.

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Definitions:

Social Proof

The psychological phenomenon where people assume the actions of others in an attempt to reflect correct behavior for a given situation.

Group Conformity

The phenomenon where individuals in a group tend to match their beliefs, attitudes, and behaviors to those of the group.

Cialdini

Refers to Robert Cialdini, renowned for his research in the psychology of persuasion and how it is applied in marketing and influence strategies.

Spiral of Silence Theory

Explains that ideas and opinions expressed in mass media can discourage expressions by people who hold dissenting opinions due to a sensitivity of feeling isolated or rejected.