Recall That Festinger and Carlsmith Gave Participants Either $1 or $20

question 52

Multiple Choice

Recall that Festinger and Carlsmith gave participants either $1 or $20 for telling others that an experiment was fun and interesting. The experiment entailed turning pegs on a pegboard one quarter turn at a time. Thus, in actuality, the experiment was tedious and boring. Study results showed that

• A) neither $1 nor $20 could induce participants to tell other people that the experiment was interesting.
• B) after telling people that the experiment was interesting, participants in the $1 condition tended to express a more favorable attitude toward the experiment.
• C) after telling people that the experiment was interesting, participants in the $20 condition tended to express a more favorable attitude toward the experiment.
• D) participants in the $1 condition were less likely to follow the experimenter's instructions.

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Definitions:

External Costs

Costs incurred as a result of an economic activity that are not reflected in the market price, often shouldered by society or the environment.

Unemployment

A situation where individuals who are able and willing to work are not able to find employment.

Efficient Allocations

The optimal distribution of resources among competing uses to achieve the highest overall level of welfare or utility.

Market Failures

Situations where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.